updates from q and a section

all this is available to everyone on the union website. one of the best feedback forums i have seen for sharholders. well done Rob and team.

http://www.unionresources.com.au/shareholderfeedback/index.htm


6/6/2006 4:13:16 PM - Funding and ITOK
Shareholder Comment: I would like to add my voice to the previous comment. UCL's openess in creating a forum such as this is a credit to management.

There are reports that the Iranian Government has built up large reserves as a results of the high oil price. As the government is a major investor in Mehdiabad, is there an opportunity to borrow the CAPEX funds required from the government?

There has been no further news on the ITOK situation. Is the offer to acquire their interest still open or should we consider the issue to be now closed?

Many Thanks

Union Resources Reply: Thanks for your email.

You are correct that as Iran is one of the world's largest exporters of oil and gas, it does at this time have a very healthy cashflow.

Local private and government debt and equity funding are under consideration as part of the financing for the project.

There is no news on Itok performing their obligation to settle the share swap agreement, to this time.

Kindest wishes

Rob



6/6/2006 8:50:23 AM - Feasibility Study
Shareholder Comment: Thanks for posting my previous enquiry - the company's openness is a credit. I would appreciate if you post this as well.

A friend of mine who is a fellow UCL shareholder challenged me on my interpretations of what information we could expect to receive. I have gone back over the announcements and reports and realise that I have let my own excitement lead my expectations of what the company is going to publish of the FS.

That is, I read more into what was promised than was actually said. I apologise if I have created unfair pressure on you or unfairly implied failing on your part.

Having said that, rereading the quarterly was great so I will content myself with continually digesting that until the next instalment - hopefully an incredible announcement about financing!!

cheers


Union Resources Reply: Thank you for your email and we appreciate your support.

We will make announcements as appropriate, going forward.

Kind wishes

Rob




6/6/2006 8:48:00 AM - Funding Projects in Iran
Shareholder Comment: TEHRAN, May 24 (Reuters) - Anglo-Australian miner Rio Tinto said on Wednesday it was pulling out of the Sari Gunay gold mining project in western Iran after deciding it was not commercially viable.

Before conducting feasibility studies, Rio Tinto's exploration manager in Iran last year estimated the mine in the western province of Kurdistan could produce 4 million tonnes of ore per year over 12 to 18 years.

"I can confirm that Rio Tinto will be withdrawing from the Sari Gunay gold mine in Kurdistan," said a spokesman for Rio Tinto in London. "After feasibility studies we have concluded that the reserves at the mine are too small to justify continuing with the project," he added.

New foreign investment projects in Iran have come to a virtual standstill due to a mixture of political and commercial concerns. A Renault carbuilding venture is a conspicuous exception to the trend.

Iran's Kurdish territories have been simmering with unrest for several months with intermittent street demonstrations, gun battles with the police and kidnappings.


Union Resources Reply: Thank you for your email.

There is no question that funding of projects in Iran is currently much harder than it was.

In particular for the larger companies.

However, there is also tremendous opportunity for the smaller more flexible companies in the Iranian market.

Kind wishes

Rob