Ann: Chairmans' Letter to Shareholders-WKT.AX, page-75

Just out of interest is Walkabout Strategy well known?

Walkabout Resources Strategy was to limit risk by defining a high quality resource with robust returns with low capex and low run of mine cost's.

• Key to this objective
• High grade mine suitable for niche markets Now expandable and battery grade
• Premium product (Best in class)Upper end of scale
• Low capex Modular plant concept $6,000,000
• Low run of mine operation cost
• Small foot print suitable for under 10 km with result of smaller tailing's dam and environmental aspects
• Mining license application simpler than a special mining license
• Evidence of potential to expand
• Expand into known markets with certainty
• Fast track of moderate scale much easier and simple
• Key to success is early production to mitigate market risk

A key advantage of a relative small scale operation

• Manageable
• Built a lot quicker and at lower capital cost
• Right sizing of plant will maximize early returns (Focus on four discrete product's)
• Can always scale up very hard to scale down
• Expand into known market with certainty, Mitigate risk

Governing factors were also key in strategy focus with existing services

• Roads
• Power
• Close proximity of port
• Friendly government  

Walkabout Resources did so much in strategy strengths to limit our risks. The resource is of high quality protected from over supply,The first stage is going to be the hardest but not limited for expansion with likely robust returns.Self funding will be the way forward after first stage start up.

Croc