Ann: Trading Halt, page-42

E25 is a high cost operation

1. Beneficiation
2. Shipped by road to port
3. Current high shipping costs
4. High labor cost region

The Manganese price has gone in cycles for as long as I can remember and it is not unusual for high cost producers to shutdown when the price is at the low end of the cycle, that is what we have now together with high haulage and shipping costs. No point in processing your asset at a loss you may as well leave it in the ground until things change. Other Australian Manganese mines have done this in the past especially where most of the workforce are contractors.

I think thats what is about to happen although nobody will know for sure until the ann comes out.

I was looking to get back in at $1 but it maybe heading much lower than that if the TH is because they are shutting down.

We shall see