Ann: Quarterly Activities/Appendix 5B Cash Flow Report, page-3

Can anyone add any further points especially on reasons not to like.

Reasons NOT to like ARN:

- African location but best or almost of all African countries so not a big disadvantage
- not high grade but is medium grade
- Company is not promoting its discovery - have not presented at any Australian conferences and almost no interviews
- processing will be more complicated due to polymetallic nature (higher cost)
- rare earths are complex to extract and process
- not totally convinced by board and management except for geologists

Reasons to LIKE ARN:

- close to all necessary infrastructure - power, road, rail, port (ie lower cost)
- maybe tier 1 size deposit - scale brings cost advantages and long mine life
- Permitting is quicker and easier than most countries
- poly metal - more stable pricing is possible
- high level of insider ownership ie management and board
- very low strip ratio (0.6:1 as stated by company) - much lower cost
- potential for other carbonatite discoveries (according to the company)
- very conscious of costs, low exploration costs for size of potential price
- lower labour costs (ie Africa)
- SP looks very cheap if it is a tier 1 deposit
- very good geologists in management and board