Ann: Half Year Accounts , page-17

I have looked at the 2010 annual report.

$109 million was booked as exploration costs acquired - this would have related to Marampa for the additional 66% acquired in the year.

In the 2009 Annual report the Marampa investment was equity accounted so therefore was not included in exploration costs. It was held as an equity investment since CFE didn't control the company i.e. it only had a 33% holding. Its not until a company gains control of a subsidiary that its becomes "consolidated" as opposed to being "equity" accounted.

There was also another 11 million in exploration costs in 2010. Some of this related to cape lambert south but I can't say how much.

Therefore the exploration costs relating Marampa is the orignal 109 million booked plus a portion of the 11 million exploration costs in 2010 plus a portion of the 8 million incurred in the first half of 2011. Assuming all of the 2010 costs relate to Marampa the maximum amount of exploration costs relating to Marampa is $128 million.

There is also 8 million exploration costs acquired in the first half - this would relate to Leichhardt.

As per note 11 in the 2010 Annual Report the 48 million reclassified as held for sale does relate to Mayako.

In summary there is 132 million in exploration costs - 8 million relates to Leichhardt, 124 million relates Marampa (less any amounts held for Sappes and/or other consolidated companies which I don't think would be much as no exploration has been done on the phosphate holdings). Therefore the maximum amount written off on Marampa is 4 million (128m - 124m) but this could easily be explained by costs incurred on Cape Lambert south. Either way the amount is immaterial in my view and no cause for panic re Marampa.

Given tony sage has said he expects to get at least 300 million for Marampa this year in an asx statement he would be in serious manure if he stated writing of exploration costs on Marampa without explaining why.

THis is my view and research only.