akm & nobles - marketing & logistic alliance. , page-17

Good morning to all,

Hereunder a few points summarised from my recent email exchange with AKM Management. Nothing new though general feeling is rather positive for the future.

- AKM believes that the contributing factors to the recent SP slump are mainly due to market conditions outside their control. Also SP appears highly correlated to the seaborne spot traded hard coking coal price.

- Supports received from SouthGobi and the Institutional Investors for SPP demonstrates a positive sentiment with regard to the development of our Ovoot Project.

- Aggressive exploration programme confirmed over the next 12 months with infill drilling to secure a Reserve in the first quarter of 2012 and the completion of several studies in relation to the development of Ovoot, and Rail Pre-Feasibility Study into the rail link between Ovoot and the Erdenet rail siding.

- recent discovery of a new coal seam within the Ovoot tenement area continues to be explored to establish if the seams link up.

- Noble Group : very positive about if for the Ovoot development . Noble is the strategic parker needed to access logistic networks within China, Russia and other Asian markets.

GL for the end of the year.

V.