to holders

If they can get the zircon above 50 and the HM% above 4.5 this year and expand the tonnage we can look forward to a rather large re-rating.

ILU has recently stated a JORC inferred for it's Nepean deposit: resulted in an inferred mineral resource estimate of 1.74m tonnes of HM at a cut-off grade of 4% HM.

As we have 60mt at 3.1% HM but the 41% Zircon is average but the Leucoxene appears to be very high at 42% which counteracts the other numbers.

Please note that ILU is a billion dollar company and their Eucla Basin JORC numbers are 267.3mt at 3.8%HM with 49% zircon and 5% rutile, so this is why DRX is of immense value given that she is all cashed up. Please also note that ILU have 2.4%HM in the inferred basket and 2.1% in the indicative. We already have 3.1% conservative inferred.

Compare and contrast.

If she can increase the tonnage (no doubt on this) and increase the zircon into the high 40s with even the HM content being only in the mid to high 3s - this will go nuts in 2008 after the $8m drilling campaign has been finalised, assayed and announced. We should also get indicative and measured too.

Luck to holders...I think we are sitting on something special even though the wider current market assessment of DRX disagrees.

I look forward to 08/09.