trading halt!!! - what could it be???, page-8

At 31 March IRN had $25m in cash and indicated expected expenditure of $8m in Q2 (double the $3.8m for Q1).

Under terms of April 2005 agreement with Xstrata, IRN is required to sole fund an "Agreed Pre-Feasibility Study Work Program" (starting mid-2005) until the later of:
- 30 September 2006
- a maximum spend of $27 million.
After sole funding period, Xstrata must exercise or terminate its option to acquire 62.5% of Tampakan or sole fund any further work necessary to reach that decision no later than 31 December 2007.

If Xstrata exercises its option, then Indophil will receive A$52 million.

Cash-flow to date + future as follows:
Q3 '05: $3.2m
Q4 '05: $5.1m
Q1 '06: $4.6m
Q2 '06: $8.0m (planned, as stated in Q1 report)
Q3 '06: $8.0m (assumed)
Total $28.9m

Assuming 80% of this is spent on the "Agreed Pre-Feasibility Study Work Program" = $23m, so sole funding period should be completed some time in Q4 '06.

At this point, Indophil should still have a few million in the bank.

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