Ann: Appendix 3B, page-15

ROH,

An agreement would have been struck with the transport company long ago in regard to taking shares in lieu of cash and the $2 would have been at a discount to the market price when the deal was done. There is no way the transport company decided to take shares when payment was due, July/Aug when shares were well under $2 , based on their excitement of the potential of Rocklands. Interesting, one of CDU's suppliers/ shareholders Sinosteel, who have already taken shares as payment for plant also own a shipping company.

On the Minsheng loan, according to the terms, CDU had to make a one off 2% payment which is US$1.3 mill and have to pay 1% interest on any of the loan not drawn down. (US$55k month)
If the loan was all in place in Q4, CDU would have had to have paid the $1.3 mill, I do not see it in the cash flow for Q4. Not sure what this means but it adds to the intrigue of the loan not being used. Maybe they paid Minsheng in July, if the payment is not in Sept cash flow and no funds drawn down, then serious questions.


Terms approved and signed by Minsheng Bank and CuDeco: -
Facility Amount: $US65m (approx. $A70m)
Interest Rate: The aggregate of LIBOR for the relevant interest period (currently
0.25%) and the Interest Margin
Interest Rate Margin: 3.5% per Annum
Upfront Fee: 2% (once only payment)
Management Fee: 2% flat fee per annum of the aggregate drawdown amount of the
facility
Facility Commitment fee: 1% for any undrawn amount of the total facility.