Ann: North Perth Basin Heavy Mineral Studies Adva, page-3

re: Ann: North Perth Basin Heavy Mineral Stud... you assume the company is not aware of the intricasies of different plants and minerals suitability. You also assume the company has only one path for development. The reality is that the company has been looking at a number of paths to see which is the best path for the company and also building its resource base to world class within the North Perth Basin and the Eucla Basin. This is obvious which you can easily work out. There are a number of parties that are looking at it besides the MOUS. FURTHERMORE your remarks are and have been defamatory to George and the Company and if you continue to go along this course with these comments I hope you have deep pockets as litigation is very expensive. The companies obviously would welcome constructive comments but in your case it has now become a farce.