facts about aar

1. Koongie Park project (Copper & high grade Zinc project):

* this project is now set for a normal transition from PRE-FEASABILITY STATE to FEASABILITY stage by Q4 2010. All relevant & natural steps are being taken from now until that time to lead to a complete feasability state by Q4 2010.
* Production could be expected in 2011 or 2012 depending on availablity of cash or/& partner.
* Once production starts, it is expected to start on Sandiego area for expected life of 4 years on plant with capacity of 500,000t/year.
* ONEDIN area is another area in Koongie park project that would continue for ANOTHER 4 years (subject to management planning & feasability)
* Profits on Koongie Park when/if production starts as planned based on avg predicted copper prices of $6,000/t avg is around $200m/4years (mine life) or around $50m/year. which is around 10c of profits PER SHARE PER YEAR. (this calculation is based on 2008 prefeasability operational costing per/lb & also based on AAR having 100% ownership of the project)
* Copper predictions for 2012 currently sits at over $8,000/t & that if happens, will take profits to a massively higher figure.

---> if you are a holder or an investor, IN MY OPINION, you should carefully think about the time frame expected for KP project to start & therefore consider your current situation.

Feysville (Gold Project):

* high grades found in the RC drilling already.
* Target ESTIMATE (NO RESERVE YET) is 50,000oz.
* Management found current grades EXTEMEMLY ENCOURAGING (See last qrtrly for details)
* New area with high grade Gold called "Delray" have been found.
* RC drilling is ongoing in FEB 2010 (see qrtrly as ref) & RC drilling of new area & old area will take us to minning IF GRADES ARE ACCEPTABLE BY MANAGEMENT!!
* If RC drilling/testing stage finishes then obviously we'll set a reserve & go on with govt licensing & approvals no apparent problems we can see so far in that area in terms of native title of any other issues.
* No start up captial is required for Feysville. it is expected to extract gold in third party plants.
* time frame here IF GRADES ARE GOOD would be a min of 6 months to a max of 18 months in worst case scenario!

-----> this project is a shorter term project than Koongie park ASSUMING that management has decided to go on with it after current drilling results.

My opinion, which should NOT influence anyone to buy or sell, is that we have very good gold grades in Feysville & I have very good feeling that Feysville will go ahead.

Overall, the current international economic saga continue to unfold & we could expect anything in terms of financial markets status in the coming few months.

most importantly, we have to realise few facts:

1. upon production, all sources predict a high copper prices at that time between 2011 & 2012! (see my previous post about Cu prdictions)

2. Management DOES NOT communicate about any updates but rather issue quarterly reports with all info in them, so don't expect regular updates.

3. Management team is very capable & techically know what they are doing! Again, they don't communicate!

4. A partner is still required to get KP working due to the captial requirement. we don't know how much capital is required now & we were told that it will be LOWER than previously estimated $70m. $70m captial was estimated based on captial requirement for BOTH ares inside KP. project (ONEDIN & SANDIEGO) & Management have indicated that we're only going ahead with Sandiego at this stage so capital could be much lower than this figure.

5. RIU brokers show is on this month & we (holders) hope to see good presentation of the company!!

6. The company is DEBT FREE!!

just wanted to give a quick brief for those who may be didn't have the time to go thru the whole history!

I could be wrong in some of these points ---PLEASE CORRECT ME IF I MISSED ANYTHING OR MENTIONED ANY WRONG INFO.

THIS IS ONLY MY OPINION & MY UNDERSTANDING TO VARIOUS INFORMATION. THIS IS NOT FINANCIAL ADVISE & NO ONE SHOULD SOLELY DEPEND ON THIS INFO TO BUY OR SELL. PLEASE CONSULT YOUR FINANCIAL ADVISOR!!!

cheers,