$4 club, page-8

Hi Shareholder;

I agree that there will be intangibles that will push the cost of REE production higher but just as there pressure to the upside on price, this same pressure will benefit Mt Weld in other ways.

Why? Take a look at the Lynas current basket price on their web site. Conspicuously absent are the elements Holmium, Gadolinium, Erbium , Lutetium, Thulium and Ytterbium. All of these elements have found uses in day to day applications.

For example, Holmium has the strongest magnetic field of any Element on the periodic chart. This was explained to me by one of the speakers at the Toronto event as we discussed the Formula One racing series which allow racing cars unlimited use of anything that will make them faster. The conversation then led us to the fact that F1 racing vehicles will be eliminating the high horsepower internal combustion engines to adapt electric motors as the base driving power of future F1 vehicles. Electric motors are better in just about every power and torque category. The problem right now is precision control, a problem being mitigated by high speed computers.

These F1 guys have deep pockets and it only stands to reason that they will pay exorbanent prices to get the best motors. These motors will probably use Holmium magnets to gain the most torque/HP weight ratio. Holmium magnets also display good constant "flux' qualities in high heat environments.

My point is that Holmium is not even listed in the Lynas REE basket but probably will be one of the highest price REE's in the stable. Few realize benefits such as this.

Also not listed are Gadolinium which when added to steel slows oxidation at high temperatures, Erbium which is used in fiber optics in the internet backbone, Thulium, used in X-Ray applicatons Ytterbium which is used as a stainless steel additive to greatly enhance it's characteristics... These are all high quantity uses and will create significant demand for the HREE's.

I'm not saying that there is a tremendous amount of these elements in a typical metric ton, but the price they will bring will be significant and probably have a significant effect on the basket price. In any event, they are not even included in the current basket pricing...

I'm sure this is something NC is probably well aware of, but as we all know he keeps his cards close to his chest and IMO this is another ace he has to play.

Also, I have been talking to some of these graduating REE engineers for the Colorado School of Mines and they are downright excited about the new applications for REE's. The real problem as I said before is a shortage of engineers to take advantage of this nascent technology...

At the end of the day, I agree production prices will increase, but I honestly beleive that the unseen advantages of the non-listed elements will far outweigh the increased production costs'.

JMHO...