Ann: Half Year Accounts , page-2

From the half-yearly report:

"...The target for completion of the DFS remains the first quarter of 2011..."

"...The next resource update is planned for Q2 2011. This update will incorporate all drilling completed during 2010..."

"...Partnership Process

The Company continues to review and discuss partnership options regarding the development of the world class Husab Uranium Project.

On 21 February 2011 the Company announced it was holding discussions with Rio Tinto around a potential combination of the Husab Uranium Project with the neighbouring R�ssing Uranium Mine, with a view to capturing the significant potential synergies that could be generated from a joint development of the two projects. Extract also announced it was holding discussions with Kalahari Minerals Plc to explore various options that might simplify the Extract/Kalahari shareholding structure. These discussions remain confidential and incomplete and there is no certainty that the parties will reach any agreement..."

"...During the past six months, expenditure increased to A$37.8M,...

...As a consequence, cash balances fell to A$35.3M from A$70.1M at 30 June 2010. The Company believes that its existing cash funding will be sufficient to complete the definitive feasibility study. However, additional funding will be required to continue the drilling programme, and to permit initial engineering and pre-development work at the project...

...On 9th December 2010, the Company announced that it had agreed to issue 7,299,069 shares at A$8.35 per share to Kalahari Uranium Limited to raise $60.9M...

...The proceeds of the placement, together with existing cash resources, will allow the Company to continue its current drilling programmes, to complete further value engineering and optimisation initiatives in support of the Definitive Feasibility Study on the Husab Uranium Project, and will, in due course, permit initial engineering and pre-development work to commence at the project."

"...The Company is evaluating several options for the financing of the construction of the mine, plant and associated infrastructure. Project financing is likely to involve a combination of new equity and new debt. The Company is evaluating the potential for both export and import credit support in relation to equipment procurement and uranium off-take. The Company currently owns 100% of the project, providing flexibility to optimise the structure of future equity issuance. Off-take rights may also be linked to equity investment, whether at project or corporate level. Following completion of the DFS the Company expects to finalise its funding strategy..."