value, page-2

This was an extract from ann made 1/12/06 prior to commencement of production.

"At current metal prices, US$/A$ exchange rate, and ‘base case’ throughput, the total project is
forecast to generate annual revenue of A$128 million, and an EBITDA of $70.5 million."

50/50 JV with polymetals should have see Revenue $64M (not $14M) and EBITDA of $35M. Half yearly showed approx $2.7 after adding back interest, depn, R&D and demo plant expenses. Annualised is $5.4M

I understand zinc price has dropped, but this disparity is too of projected $35M Vs $5.4M is too much.

Im thinking lower grade and much lower throughput. The half yearly did not mention throughput which was supposed to be 65,000 tonnes pa base case as per 1/12/06 ann.

Have I missed something??

I hold