Ann: Notice of Annual General Meeting/Proxy Form , page-2

re: Ann: Notice of Annual General Meeting/Pro... 7.4 IMPACT OF PROPOSED SALE ON THE COMPANY

If the sale of the Iron Ore Assets is approved by Shareholders and proceeds it will have an impact on the Company. The Companys 100% interest in Radar will be replaced by an approximate 37% interest in Radar Iron.
This will result in various advantages and disadvantages which Shareholders need to consider in assessing the impact of the proposed sale of the Iron Ore Assets on the Company.

7.5 ADVANTAGES OF THE TRANSACTION

The Directors are of the view that there are two significant advantages that may be relevant to a Shareholders decision on how to vote on the proposed sale of the Iron Ore Assets:

(a) the sale of the Iron Ore Assets will allow the Company to pursue new opportunities following its investment in the Potash Project (outlined above); and
(b) the Company and its Shareholders will have continued exposure to the Iron Ore Assets via its retention of an approximate 37% stake in Radar Iron following the
sale of the Iron Ore Assets.

7.6 DISADVANTAGES OF THE TRANSACTION

The Directors are of the view that the following non-exhaustive list of disadvantages may be relevant to a Shareholders decision on how to vote on the proposed sale of the Iron Ore Assets:

(a) the Company will no longer retain a 100% in the Iron Ore Assets;
(b) the Company will lose absolute voting control over the Iron Ore Assets once they have been sold to Radar Iron; and
(c) the Company will be focusing its activities solely on the Potash Project, which may not be consistent with the investment objectives of all Shareholders.