break out, page-17

Natsinc

The comparison with BON is a good place to start. UCL's two tenements are immediately adjacet to BON's current tenement but located in the better zone. As a result there will be a twinning effect for both companies. UCL is aiming for a JORC in two months so that could be good for both. Perhaps some joint venture work on development might occur down the track?

Anything either company does will improve the value of the other's prospect. It will be like realestate investment where for eg if your neighbour spends a whole stack of money improving their house it adds to the value of yours - an effect that is increased if the location is good to begin with.

Regarding that project in Iran - it just happens to be the world's largest undeveloped zinc mine. There is also a dispute underway with the Iranian govt partner so your point about the sovereign risk there is currently valid however don't dismiss it out of hand - it's worth US$700 million plus to UCL on NPV when they finally get it resolved.

Current value? Hard to say. I've been a holder for a long time and it's nice to see a strong spike like this. It probably won't hold but the positive is that UCL has now got its worst days behind so that's a great start.

Vayama has held for a while and was open enough - told us all when he sold on the sharp spike. I'm ok with that.l