2008, page-5

AGO has the potential for very large DSO hematite resources. Targeting +40MT in the Pilbara and +40MT in the midwest. Pilbara is of course the main game and AGO are conservative IMO with their estimates of the potential at Pardoo & Abydos. We may see +60MT from these two, with Abydos in particular shaping up with significant additional potenital. AGO have also been very active in securing further ground all over the region - this adds significant potential that is yet to be discussed publicly. Exploration to date has focused on out cropping mineralisation, so there is potential for additional discoveries under shallow cover.

In the medium term we could see AGO producing at +6MT DSO and 10MT mag concentrate per annum with 100MT of DSO resources and 1.5BT of magnetite resources.

The key reason to invest in AGO is that they will be a producer as of October this year, unlike many of the others who are still years away. Could not have timed it any better, with iron prices expected to rise again this year by 30% to 50%. Share price will be re-rated once production starts.

AGO is one for the bottom draw.