valuation question, page-11

GuoYupeng, I don't think management would go for something like that - raise $20 mil at current prices. It would be detrimental to current shareholders as you said.

I think the aim (or best case scenario) would be to drill, scope out and mechanise the Terranova hard coking coal mine using the current 6-8 mil cash it has (remember more cash to come with options expiring in early 2012).

Although we might not believe it the way things are currently going, one would like to hope a successful scoping and drilling and eventual mechanisation of Terranova will lead to quite significant share price gains. Surely that is what one would anticipate should predictions anywhere near 300 000 tonnes at Terranova come to fruition?

Further capital raising might occur after that for other projects should more funding next year be necessary. One would like to hope the shareprice is more in the vicinity of 40 or 50 cents as compared to 10-12 cents. Obviously that would translate to a fifth of the amount of new shares to be issued.

Here's to wishing, dreaming and hoping anyway :)