fundamentals consideration, page-54

Hi Mcbombers,

Ground consideration of a legal challenge is based upon whether management withheld information that could be considered as price sensitive.

When the company was doing the spp there was still much talk that the CAPEX, OPEX and PFS numbers are in the ball park of the original promoted figures.

When you look at the PFS there were mutiple components that made up the total numbers. If there is grounds that the management knew about the blow outs and still did not disclose this then its ground for a court case. I see that the process plant is quoted at $437million. If they knew the cst of this component alone and are still talking $300-$350million total CAPEX then this is misleading.

Management was talking $37 for OPEX which included the $11 royalty which means ex-royalty the OPEX is $26. Then the PFS states that the processing is $22. If they had an indication that the processing cost is $22 say 2 months ago (I am just using a hypothetical scenario here) then on a reasonable grounds basis the OPEX was going for a big over-run.

If there was any communication such as email that indicated that showed a massive cost over-run could have been reasonably forseen and this was withheld then there is going to be a case. I understand that this legal challenge may only apply to investors that made recent purchase within a timeframe.

On the basis that "management holds a large number of shares" I would like to know how much was their average price. If most of these were director shares then the price that they paid for these would liely be much lower than even the share price of today. Its much easier when "potential profits" disappear rather than coping a loss.

Also management is paid by shareholders as well. In the Anuual Report 2010 "Anthony James Schoer?s fixed remuneration is $448,044 (which includes car allowance and superannuation) and his variable remuneration is
any executive share scheme or executive share option scheme or cash bonus payment as may be determined by the Board". The entire board picks up $1.25million in directors fees.

On the case where "sp drifts above spp or the investors entry" ... I can tell you that there is still a case. If you call a commercial lawyer they will tell you. Rememer that your basis is on the fact that price sensitive information was with-held. Also shareholders who sold at a loss basing on what was released can also be apart of the case.

I know a few that will line up a court case as I write. Once again its up to the individual. If you do want to pursue this avenue then ignore me what I have written. In the end its up to the individual free will to decide.