thoughts on financial strategy, page-46

Declaring myself as an SFR holder and have owned a small parcel of OZL shares since the 20% acquisition of SFR. Would have been good to grab more at the low $1s, however I feel the price at $1.70 is now at the higher end.

I do have some thoughts on the SFR position.

As far as the Board seat request, I do not see that SFR will ever give OZL a seat on the Board of SFR. Which Board on this world would offer a seat to what was essentially a hostile move on the part of OZL? The declaration by OZL that it is interested in strategically partnering SFR for development and eventual production is sus at best. It would only provide OZL an insight into SFR's actitivities for an eventual take-over.

As an SFR holder, I want to see the true potential of the ground being delivered with more exploration, as it will be worth more to SFR individually as it would be for OZL. BUT would also welcome a take-over offer at a good price. DYOR and you will realise that SFR has a world-class asset that is trading well below the NPV of the current metal in the ground. This doesn't even consider the likely upside of future exploration, the record copper prices and the cash they have on hand as at 31 Dec 2010, circa $125m.

As an OZL holder I want to see some action and use of the huge stockpile of cash. Management need to decide and make a move. I want management to utilise the cash and if not pay it back as I can easily invest in a term deposit myself.

OZL risks losing market ground to other copper players (e.g. EQN) with it's overly conservtaive attitude towards risk. I do not see any benefit of having a 20% holding in a developing Company, you either buy the lot or sell out...

I eagerly wait on the proposed capital strucutre to be announced, next week I believe.