agm notes

Worthwhile attending in my view as full board present (except W Etheridge), and reiterated to me they are a screaming BUY. Only around 20 attended. All resolutions passed. The only contentious ones were those related to the issue of options to 2 directors. Questions were asked given the current depressed sp whether they should be issued and indeed accepted at these levels. Have a look at shares voted against to get an idea re this issue. I personally don't have a prob with the issue.

W Howe then went thru a company presentation and took questions. He advised that Steve Tainton, Investor Relations (who also has a technical bground) and himself have just completed a worldwide roadshow. Very positive meetings with instos buying and soaking up stock on mkt.

- Opportunity here for MNC to become a major copper producer, while the preso says 'mid-tier' eventually a substantial copper producer

- 8 drill rigs on site at LC currently, around 40,000 m drilling completed so far so by end of yr 100,000m will be done no probs. Although he noted later that they may not have to do the full 100,000 and conserve cash to be put to other uses, eg put it into metallurgical studies etc)

- Went over issues other co's are having with community re water use but again stated that MNC shouldn't have those issues with LC being in state owned land and will be using sea water. They have been looking at what infrastructure will look like incl loading facility, water pipeline etc,Sounds like they have decided the sea water route, 75km to sea. The route to sea not on community land and no intention for infrastructure to be shared. They have a strong community relations program in place.

- Discussed what other similar projects have fetched per pound. Eg quellaveco 18.5c, Sumitomo is more difficult to estimate but around 5.5c for the cash component of the deal and somewhere around 8c for the debt, have since been taken over so may have paid around 12/13c per lb in ground. I think later he said MNC is trading at around 0.7c lb in ground right now so you do the math. The other two have got to feasibility while MNC still at advanced exploration.

- Mollacas and Vallecillo Ann's to come out soon with new resource statements but it doesn't sound like there will be any huge increase in resources from either.

- Camaron drilling to commence within 24 hrs, 5000m of RC drilling to test gold and copper/moly

- Options on how we mine LC are critical. I note here there was a few questions re this. Some of this discussion went over my head. He said the very high grades are continuous down the system (see pg20 of recent asx release preso top right of the graphic)
We are sitting on top of a porphyry system which is different to others - no chalcopyrite blanket but we have hole CD 31 for example and all that goes with that. Very strong system. They are getting to grips with the size of the starter pit but critical issue is that they believe there is a starter pit. Prob will be looking at it in a stage process, metallurgists and mining engineers are working on this as we speak. They are doing geotechnical work for development of pit/s (eg need to look at what side walls will look like because project is sensitive to that). Think the main breccia system is 300m x 300m and 31% of total metal down to 1000m, getting very good results out of south west shoots. Question was asked if they can tell us the total tonnage at a particular depth. The answer was no but I think that was about disclosure rather than them not knowing. It sounds like they plan on releasing info to mkt as soon as possible re these questions. He talked about how Nth Parkes was mined, to my mind not as to how LC will be mined but as to how things can eventuate.

- re funding they are looking at all options and are reluctant to go back to mkt . Cash burn currently 3 to 3.5 mill a month. Possible sale of an asset? All options on table. Green devil as to recent Peruvian article I believe that MNC said as they previously have. That is, eventually they may look to some sort of deal. Not necessarily now, although it sounds like that article made some big boys say to MNC hello remember us.

SUMMARY
In my view it was plain that the board fully realises the sp is far undervalued and are actively looking at informing the mkt asap about where MNC and Los Calatos is at as far as the future is concerned. In saying that they said they won't be putting out a statement for the sake of it. They realise MNC has a world class asset (and yes there are potential suitors) but they won't rush any decisions because of an undervalued sp. There is no doubt questions are to be answered about how they will mine LC and what the starter pit will look like but from my point of view the fact that they have options is a positive. As I said earlier have a look at what MNC is trading at per lb of copper vs other recent sales. Any comments.

All of above u have written as I understand it from scribbled notes and IMO . Not to be taken as investment advice.