message to ceo, page-2

Hi all, Craig Williams responded to my email a short time ago and his confidence is quite heartening!
Heres what he had to say:

"Thanks for your email. I will try to clarify the situation for you.

Zambia enacted a new tax act on 1 April. This new tax regime increases
the corporate tax rate from 25% to 30%, the royalty rate from 0.6% ton
3% and includes a new variable profits tax and windfall profits tax that
relates to copper prices above $2.50/lb.

However, Equinox signed in December 2005 a Development Agreement with
the government that fixes the tax package applicable at that time to
Lumwana for 10 years. This DA includes among other clauses a windfall
tax that is not as onerous as the newly introduced tax. The DA is
enforceable under Zambian and international law and is binding on both
Equinox and the government. We have had recent independent legal advice
from counsel in both Zambia and the UK confirming the legality of the
DA.

Notwithstanding the above, we have a very good relationship with the
government and while we have emphasised to them the enforceability of
the DA, we have also indicated to them a willingness to compromise on
specific clauses within the DA. Over the coming months we will both
enforce the DA and work towards this compromise.

I apologise that this answer to your question is not clear cut, but I am
confident that we will come to a reasonable resolution of the matter
with the Zambian government. In recent meetings with various ministers
in Lusaka, I was assured at every meeting that Lumwana is the most
important development in the country in a generation and the government
will not do anything to jeopardise the success of this mine.

In the meantime we are of course focussing on building Africa's largest
copper mine to be commissioned in mid-year."

Regards
Craig

Craig R. Williams
President & CEO
Equinox Minerals Limited
50 Kings Park Road, West Perth, WA, 6005, AUSTRALIA