Ann: Appendix 3B - Issue of Convertible Notes , page-4

From the ASX announcement:

"The convertible notes have a face value of $0.11 and are convertible into 1 ordinary share each. The convertible notes are issued in accordance with the Convertible Note Deed dated 1 February 2012 as amended."

"as amended" what the .....???????

giving SLR shares at 11 cents each now......this is starting to get seriously close to corrupt!

Jason, Hamish & co were too lilly livered to seek out an alternative solution by giving such an "exclusive" opportunity to SLR in the first place. I am pretty sure there was al least one alternative propositions put to the directors months ago that has been discounted. It may have at the time caused some dilution of share holder equity but could have kept the company independent of SLR's "opportunistic and exclusive tenticles" and probably just as good if not better for share holders as it has played out.

I am always one for lateral thinking - and have a radical solution for PRH shareholders........we need to touch base with Canadian miner - First Quantum - our neighbouring company who took over the Ravensthorpe Nickel project from BHP. They now have a very strong community based interest "and I think an obligation" to foster mining projects in the area. They are reporting very strong results internationally (and subject themselves to takeover rumors) and could pick up the Phillips River Project with "pocket money" at the moment. I know they might at the present time consider it too small but with a bit of cash spent on further exploration and the synergies of location it could actually be a winner for them and the community down the line.

Anything please to challenge this current arrangement with SLR.

Clearly the shareholders are the last concern the current directors have at the moment. They clearly want to put it in the "too hard basket" and wash their hands of of the Phillips River Project. Too much good work over the last decade has gone into this both by some good mining people and supportive shareholders for it to come to this cop out.