cap raising disappointing in view, page-4

From the March Qtrly (page 2):

" - reserve update to follow based on this upgrade (JORC resource upgrade stated in report) and further drilling that has occurred during the Quarter."

From the CR announcement (page 1):

"The proceeds of the placement will be used to:

1. Increase JORC code compliant reserves..."

Current reserves stand at 252Mt which is only enough for 7 years of LOM at 35Mtpa.

This could well be the most pressing issue for SDL at the moment.

Les Mamelles may well be some icing on the cake that will improve the numbers but will have zero impact at this point.

SDL "aims to" and "our objective" is to have project conventions in place by June 2011.

Can a JV partner/financing be in place without these, and, if so, what concessions need to be made to induce an early commitment?

The CR tells me we must first firm up our reserves to a minimum 10 yrs LOM at 35Mtpa and finalise the project coventions before we can create the best deal for shareholders.

Further, the March qtrly is contradictory in regards to our "objectives".

On page 3 we state our objective for finalising negotiations is " first half of this year." then on page 13 we state our objective is "prior to the end of 2011".

Plenty of mystery here....