expectations mark 2 , page-125

I spoke to PL yesterday and most of my concerns were alleviated to a degree. I wont quote PL word for word as the context of the conversation envolved me asking specific questions to my train of thought and not what the eventual outcome will be.

Nkwe are still in negotiations with Anglo and the DMR envolving a possible joint venture opportunity and the company has stated that in announcements.

Nkwe still has a possible joint venture in place with Xstrata but doesnt appear to be written in stone and obviously has to meet their IRR targets, which with apologies to BurntGambler over value per ounce I dont think will on the original BFS hence the optimisation of that and in my view only there would have to be compromises made to the agreement.

I made a post saying I think there is 5 to 10 years worth of ore in front of the declines at the Modikwa mine before they reach Hoepakrantz, the company thinks 5 years. Clearly the costs of mine development would be reduced signifcantly using the available infrastructure at Modikwa and would probably meet Anglo's IRR expectations.

My conclusions are if value to the company isnt recognised by doing a joint venture with Xstrata than a joint venture with Anglo is preferred but the envolvement of African Rainbow with Anglo seems to muddy the waters a little and there appears to be internal conflict.

Hoepakrantz will most likely become part of the Garatau project in any event and Eerste Geluk will be the main focus on Tabatse with the shallow resource making it very viable mine with lower over heads thus making it a possibilty to go it alone using contract miners but the synergies for Xstrata being so close to the Lion smelter are incredible so a joint venture there could be quite valuable.

I understand timelines for announcements are hard to keep if it requires a obligation from a third party. The bank feasabilty study on Garatau isnt feasible without involvement from Xstrata so you cant really announce that it is without a commitment from them and I believe Xstrata may already be in receipt of it.

Anglo have been crunching the numbers on Garatau for years and the BFS could easily be adapted using a different mining approach via the declines but another BFS on this option isnt viable without a commitment from Anglo.

The only project to be feasible without third party commitment is Tabatse and it appears Nkwe have started to concentrate on this while waiting on reasonable offers from Xstrata or Anglo perhaps.

Balilow or someone else made a comment that BFS and joint venture may come as one announcement and to me that makes sense and is plausible, actually I'm in agreeance with all Balilow's expectations or predictions but its a bit like Nostradamus were its hard to interpret until after the event has unfolded.

I asked about Blue Nightingale's interest in the Garatau/Tabatse projects and he assured me that they do not hold an interest in these projects only the projects such as Tinderbox, Kilpriver etc...I point out that it doesnt read that way in the annual report and told me a again that Garatau/Tabatse are a separate entity but that only makes sense to me if Garatau/Tabatse are part of Nkwe Eastern Limb (Pty) Ltd that is a 100% contol entity of Nkwe Platinum Ltd. Also asked why Blue Nightingales 30% interest in Nkwe Platinum (South Africa) (Pty) Ltd hasnt been reduced to 26% as per requirements after completion of conditions. Totally lost me on that one stating economical interest is 30% but interest is 26%, BEE requirements, South Afican legislation, so on and so forth. Still confused as ever but will try and follow it up.

Asked about possible legal ramifications against Nkwe or any that will effect Nkwe against Genorah or the DMR. Bengwenyama Minerals or whatever they call themselves have asked for a review as is their right under PAJA and any chance of winning court action if it eventuates appears weak. Most of the Bengwenyama are apparently on the side of Nkwe and Ian Shapiro no longer represents them. Negotiations are still under way with Anglo and the DMR and the matter with Myletti Minerals (Unsure of the spelling)over Hoepakrantz was settled.

I cant validate any of the last two paragraphs as it up to each individual shareholder to make up his or her own mind as to what could eventuate and the possible outcomes. As I said at the start dont use any of this as quoting PL directly because I'm just interpretering the way I heard it.