thoughts on financial strategy, page-37

Drafted a detailed reply on this a few days ago HT1 but had to go out at short notice before completing it.

In short I'd rather see OZL make a bid for SFR sooner rather than later. Agree with you that a cash+share mix is the logical way to go.

Main reasons include:-

1) We have cash and investors are anxious to see it used wisely or returned to them. SFR need cash to fully develop and process anticipated resources.

2) We already have a strategic holding in SFR and no other player currently has a major stake which in not capable of being negotiated with. The quicker we move the less chance another spoiler may appear.

3) Compatible/complementary strategic resources and goals. Aim to be diversified Copper+gold pure play based from Australia. Together we have cash, expertise, structures and desire.

4) Offers both companies shareholders the option to participate in combined assets or sell out.

5) Spreads download risk of either Prominent Hill 2 or DeGrussa deposit not delivering to full expectations.... at the same time as enjoying upside of one, both and/or or newer deposits being of Tier 1 category.

He who hesitates is lost!