email from shaz

Hi Nouri,

In regards to the trading halt, the Company called the halt as it had received an offer late on Tuesday afternoon, and became aware that night, that the Indian press was likely to be disclosing details of such an offer being put forward by NMDC. So in order to comply with our obligations to have an informed market, we called a trading halt to allow the market to be fully informed, as we have done throughout this process, since signing the MOU in early 2011.

The market has now been fully informed and are aware that the board has received an offer and is evaluating that offer. The offer is also being reviewed by the Company's legal advisers and corporate advisors.

In terms of the price, the offer put forward by NMDC includes a cash component, which the board is reviewing.

Prior to and concurrent with the MOU / offer from NMDC, the LCY board have been looking at potential avenues to realise additional value for shareholders, including corporate plays such as in-specie distribution, acquisition of projects and divestment of assets. These views have been recently communicated in our latest quarterly report.

The board is now examining various options / scenarios to extract the maximum value for shareholders, by incorporating these additional avenues, when combined with a cornerstone investment from NMDC.

We will be updating the market in due course as per our announcement today.

Regards,

Sharon