xmen buy cloncurry cu project from exs $175m, page-2

Hmnnnnnnn!


The Exco Board believes the Proposal is in the best interests of shareholders and recommends that shareholders vote in favour of the Proposal.

The Board believes the value realised under this Proposal offers a greater return on equity to shareholders than pursuing the project as a stand-alone development, with the consequent cost of further equity and debt capital raisings, as well as the exposure to development and market related risks.

The cash delivered under this proposal, in addition to other cash flows, will allow Exco to make a substantial return to shareholders, many of whom have been patiently waiting for such an outcome for many years.

The cash retained by the Company allows a major exploration effort at the Company?s other projects,
particularly Hazel Creek, where there is good potential for further discoveries of a scale that may exceed
the value created to date through the Companies development of the Cloncurry Copper Project