patience, page-16

May I politely suggest that some of you above simply need to go back and read what the Heads of Agreement actually says, rather than guessing what it might say. It is all there, in black and white.

Chengde are investing $30M by way of 2 $15M convertible notes, in two tranches of A$15M each.

The first $15M will be used by AXO to exercise their option to buy the leases at Balla Balla. This deal needs to go through for this to happen.

The anncmt today of the offtake agreement of 3mtpa of iron ore at the spot price that BHP/Rio Tinto etc negotiate each year is a gaint step forward to converting this heads of agreement into a full agreement.

3mtpa of iron ore fines at the latest agreed price of US$83.40 per ton (www.econstats.com/rt_ironore.htm) equals approx A$300M of revenue each year. That's some pretty serious dosh there, and this does not include what revenue they will get for the vanadium part of the project either.

For a company with a market cap of A$50M, these are really big numbers. I just wonder how long will it take before someone starts putting the numbers together and realises "holy cow". Surely if they stay at these prices, a predator will appear.

Huge leap forward today.