value of the 2 percent royalty , page-16

Thanks for everyones input.

I should have phrased my original post better. Well, English is not my mother tongue. What can I do? LOL...When I said there is a time frame built in the Sales Agreement, I guess I was referring to two meanings, one which is written on the Agreement and the other which is verbally indicated by Cliffs.

Either of those is possible. Written time frame is widely used in Farm-in agreements, I dont see any reason why it could not be used in GDNs Sales Agreement. As for the verbal indication, there are two things that lead me to believe the possibility of a time frame. One is clearly written on a letter to Cliffs shareholders released on 26 May 2010 indicating that an expansion of its annual capacity at the Companys primary production complex near Koolyanobbing is well underway. The other one is comments made by management on announcements dated 29 March 2010 and 7 September 2010 as follows:

After much consideration, and a review of a range of development opportunities, the board felt that Cliffs were a perfect choice to ensure the timely development of the Johnson Range Iron Ore Project, said Golden State Resources Limited Managing Director, Mr Richard Sciano.

As previously announced, the directors are currently reviewing potential performance of past projects to provide future revenue from royalties, this projected future benefit is considered as an ongoing justified reward for loyal and long term shareholders.

Notwithstanding the possibilities of the above, should GDN releases the valuation of the 2 percent royalty no one can deny the impact on its share price. Go GDN!