cat's out of the bag!, page-26

Hi prhb

I work out ERA's production cost at ~US$24.60/lb.

i.e ERA's 6 mths (EBIT) A$176m / 5.4Mlb = A$32.59/lb

or A$32.59 x 0.718 = US$23.40/lb (Exchange Rate as per ERA's Report)

Sale Price US$48/lb less Profit US$23.40/lb = US$24.60/lb Production Cost.

EXT has a current estimated production cost of US$23.6/lb according to their Scoping Study. Figures in Scoping Studies are usually conservative with up to a 40% margin for error.

I would expect this figure to be closer to US$20/lb when the DFS is released mid next year.

Regards

Steve