First of all apologies as this may be all over the place and not...

First of all apologies as this may be all over the place and not as thorough as hoped for.

The Chairman was not there. A/Chair was Tim Read, he apologised on behalf of chairman but why didn't he attend? Next apology was for William Howe, his plane was running late - cant help that, oh yes u can get on an earlier plane. William turned up soon after the start.

In the chairs opening address he noted that partner talks were at a advanced stage but cant guarantee its going to be successful - no intention to finance alone and will not dispose of it at a 'cheap' price and they have a 'plan B'

Have taken considerable steps to reduce corporate costs. Current cash on hand around $13 million. Can survive well into 2015 without having to go to mkts.

Re the remuneration report ? Was asked why execs don't take a pay cut. ? Was asked why they don't fall on their sword and resign. One of the answers was that the head count has been reduced and will further reduce costs.

I asked what the AIM was doing For MNC. By the way I thought that Tim Read was excellent today. His attitude was excellent unlike some who I won't name (I don't want to use up HC fighting fund). It was a long answer but essentially he said that they started from scratch and he has brought in Blackrock Investec and I think it was Singapore sovereign fund. He said the AIM mkt like the Aussie mkt is not good right now. He noted he has invested half of his fees back into MNC.

There was a ? about what skills Tim Read is bringing to board. Included in response was that he is old and he has seen mkt on dire conditions before. It is not their intention to raise capital in current conditions that would dilute shareholders. They want to structure a deal that would not dilute shareholders

There was a ? About whether it was time to review board and bring inns fresh new board and it needs to be addressed promptly. There were a few questions comments around this subject. To be honest I didn't feel there was a direct answer to this point rather that it is something they are considering...

All resolutions passed easily / although as u will see quite a few votes against the remuneration report. Also a few questions on this subject.

Mollacas / no feasibility until metallurgical test work done - one option is a 2nd hand plant or the person who owns it to do a JV. WH noted power costs have gone through the roof in chile. I think he said it is around 6c a kilowatt hour in southern Peru compared to 20c in Nth Chile.

He said they have to be very careful about pushing button on Mollacas and the numbers have to be right. ? About any chance of selling it - he said they have run an informal process but the issue there is no more tonnes in the project makes it difficult for purchasers. Cost to develop Mollacas around $55 to $60 million, if get 2nd hand plant could reduce by $10 to $15 million and maybe could do a JV with owners of 2nd hand plant. Doing environmental monitoring as part of EIS process.

At Los Calatos they have been looking at the strip ratio but staging is difficult. They have come an enormous distance in understand it and have for example a good handle on the geology. While options to develop the mine are not vast it will be a mine. Currently doing info gathering, oceanic graphics study, ICP work to determine metallurgical test work.

There were ?s about the JV process re LC but essentially Howe said they can't say anything because of the process.

Another ? About whether MNC has the required level of expertise to do a JV deal and whether WH is comfortable with the team on board. WH noted that any company has to change

Tkg's Rodney Hudspeth was another who I thought was excellent - eg he explained to the board that investors want and need hope on mining companies, MNC need to do more to convey that.

Again more than one ? That the mkt has no confidence and struggling to get new investors. WH said that we don't sit around all day doing nothing but we are out there talking to people. Used Investec as an example who have increased there holding. He said that if we need to slash and burn over the next 3 years they will but it's not the ideal outcome.

The trading window were noted and they are very strict but in Marxg management bought a few million shares. Sounds like because of JV talks directors can't buy.

I asked whether there would be a consolidation of shares in next 12 mths - WH said no much to my relief.

That's pretty much all I have in my notes but I have much more in my head . I didn't get to ask some of Greendevils questions so apologies but as it was I asked my fair share and the meeting was closed around 12.15.

In summary I was a little disappointed at some of the things coming out of the board's mouths but also happy to see (eg Tim Read) that they acknowledge the problem and are empathetic. On the positive for me is that they are nowhere near going under and they have plenty of cash in a worst case scenario for at least a couple of years. TKg asked if there is any problem with LC and there is not. On the negative IMO they need to sell the story better and I am not convinced they have got that message. I just
Saw your message re Blackrock Toq and it was one of the questions I didn't get to ask as to whether they were sellers but he did note funds have being having redemptions. I also think it's pretty obvious that the mkt has already priced in the MNC so called 'Plan B' it's just a matter of whether they are capable of pulling off 'Plan a''