sydney roadshow, page-13

Hi Danube,

Appreciate your sentiment on the offer and completely understand why you feel that way. However I just want to provide some feedback on some of the points raised.

Point 1. No idea if it is true or not that the 51% ownership will help them get Chinese money, so agree with you there.

Point 2. There is an element of trust required, absolutely. So in terms of helping GBE get funding, providing expertise, future dilution, not interfering with management, ECE could absolutely back away. But the legal obligations also exist in terms of directors operating in the best interest of shareholders (remember Mark and Bill will be tainted with the same brush and legal action as the Chinese directors), as well as the price setting. And so I do feel comfortable that GBE won't be used as an instrument to ship money out to China, but by the same token there is no certainty that things will continue the way they are now (with extra money) as there are no legal obligations for that part.

Point 3. There is NOT plenty of money around. Having spoken to directors at other mining companies, almost all companies are struggling to find capital to turn their potential into mines. Note that the $47 million is not enough to get everything out of the ground. The BFS, testing, pilot, etc for each of the projects already will use up most of this money, and so additional funding will need to be secured from somewhere. ECE have the connections and know how to get this extra funding.

On your closing note. I have specified before that BDO is completely independent and that it is not possible for GBE to "hand pick" their assessor other than commissioning them to do the work. Other assessors could have gone more positive or negative. Also note that BDO took into account the price spike during the HREE hype.

While not completely convinced this is definitely going to lead to success, I have to say that I do feel now that this deal presents the best option forward given where we are now. My bigger worry is that, should this deal not go ahead, we will be a company sitting on great assets with no funding to progress the BFS (let alone mining itself), and difficulties entering the Chinese markets.

We're in a world of increased competition and increased difficulties in obtaining capital, so to have the cash and a major player in our corner should only serve to help propel the company upwards.