rock and a hard place, page-5

Hi BB

BMN has been a pretty useful learning experience in how to handle massive losses and getting to know a few of my own weaknesses and flaws in my approach to shares. I burnt a motzah of cash on this one. A serious motzah. A couple of things stick in my mind - admittedly they are negatives but probably because I have seen this thing tank from $3+ to 6c it is hard to be overly positive about the experience and those running the show.

- complicated capital structure was never resolved. Not clear why but little doubt it hasn't helped "sell" BMN because it is an unattractive wrinkle - a complication to deal with and overcome. It has also amounted to a fair bit of free riding to this point through that to the extent Clive has kept 20% ownership of the company without having to contribute further capital to the cost of getting us to this point. He would argue that was the benefit of getting in on the ground floor. I would suggest that perhaps there is an element of shortsightedness in not resolving this aspect to make the company a cleaner and more attractive proposition as either a corporate partner and/or takeover prospect.

- the company turned down a takeover at 10 x the current share price.

- stranger things have happened but I would be amazed if they could pull off a CR to raise $8m plus. If you are a shareholder why would you pour further money down the hole, if you are a so called "sohphisticated investor" or insto what confidence do you have in the capability of current management to do other than burn cash well. The last 7 years speaks for itself. Bearing in mind they need $8m to begin with to pay off the loan note to avoid triggering a default and place the company at imminent risk of going into receivership.

- at a share price of 6c they would have to issue 133m odd shares just to cover the loan note repayment let alone raise any further funds to keep the company under "care and maintenance" - if indeed they ever do.

- they have been slow to rationalise expenditure - trim down the Board and move into a care and maintenance state proper. In my view they aren't even in one now. Slightly inexplicable given the current state of both the uranium and capital markets as they themselves acknowledge it. Up until the last quarterly the company was still engaging in discretionary spending - to no obvious benefit to shareholders other than to further exhaust dwindling cash resources.

- they have been painfully slow with progress and information on the mining license - Extract got theirs and they were considerably behind BMN in the process at one point but somehow managed to overtake and are now building a mine. Yet here we are and precisely why - we haven't a clue nor even an attepmt at an explanation.

- an engineer with an MBA does not a great CEO make. They can tell you about rocks, construction, drilling holes, leaching process yadda yadda but running a company is about a whole lot more than that. PR skills - non existent, corporate finance nous seriously questionable, the list goes on.

I like to try and see the positive and give management the benefit of the doubt but this outfit have done very little if anything to justify that.