capital management, page-5

Reiners,

I don't have a formal proposal drafted.

I assume (based on experience) that most companies keep an eye on Hot Copper. As such, investor feedback tends to be read one way or the other.(However, if other investors really want me to send a formal proposal to GBE with this suggestion, I am happy to).

My suggestion is they spend between $1 and 2m on a buyback. That is, between 7m and 14m shares at current prices. Less than 5% of issued capital, so not requiring shareholder approval. Current expenditures in total is about $2m a month, on exploration and development and corporate overheads.

GBE is fairly illiquid anyway. To buy back any decent amount of shares would have to be done slowly so as not to artificially push the price up. But as part of an overall strategy (keeping cash on hand for Kanyika, drilling other prospects, other farmins/acquisitions, $1-2m isn't much).

Also bear in mind that the interest we earn on the $42m ($40m by end of Jan.) is approx. $2.1m pa! (which, ironically, is the amount I suggested for the buyback). It is a very modest amount. But it does add value.

It also send a message message to the market about management's belief in GBE's value. It says in large letters "we are cheap!" It also has the additional effect on putting a GBE announcements (Appendix 3E's) on the ASX announcements most days. This in itself raises GBE's profile to more investors.

Buying back shares, well under cash backing, is always highly value accretive per share. It really hope GBE reas this and consider it.

cheers,

Yaq