Ann: Market Update - Balmoral South Project , page-5

I think Balmoral South now has Dominic and Clives full attention for the first time ever. It is Clives next stepping stone, as being his easiest project for immediate start, since the collaspe of his last float.

I still think he will eventually bring ARH directly into the Resourcehouse banner. Its just easier to get it underway as arh. He can than attract investors into a Resourcehouse float once it contains a up and running project, unless he gets enough confidence to go solely on the coal.

I think the idea of another seperate iron ore project for Resourcehouse (other than ARH) has gone by the way side for some time to come.

Once ARH finance is signed sealed, the market cap needs to be alot higher than the current 100 mil.

What will we get charged for the 2nd 1 billion tonne ?

Will need to start the drilling again to prove up.

Hoping for a steady climb up from here. Believe we have consolidated the 26-28 cent base, i think we will see low to mid 30's very shortly.

Confidence in the project is building. Must be a market crash due then, Ha Ha.

Good luck.