Ann: Year End Profit Guidance , page-4

dan - my 2011 gross profit prediction is $74m calculated as follows:

cost - MRE is mostly fixed cost operation, very little variable costs.

2009 cost of production - $377m (from annual report)
2010 - $380m (basis subtract gross profit from revenue)

I expect 2011 costs to increase due to higher sulphur costs and additional costs of long haul from murrin murrin east pits.

2011 cost of production (MRE share) est - $400m

revenue - MRE always over promise and under deliver with production forecasts. as stated previously, I use 30K nickel in my calcs, (MRE share 18,000mt), 2k cobalt (MRE share 1,200mt)

my assumptions for average nickel price very much a thumbsuck but lets say USD 24,000, or AUD 24,000 if also assume parity with USD through 2011, cobalt let's say $35,000mt

2011 revenue (MRE share) est

nickel 18,000 x 24,000 = $432m
cobalt 1,200 x 35,000 = $42m

total revenue (MRE share) = $474m

2011 gross profit = 474m - 400m = $74m