all proposed?, page-4

CK,

I'll try to answer those questions.

Firstly, there is a signed, enforceable agreement in place. Yesterday's announcement described a variation to that agreement which has now been "signed-off" by the paties involved (Timeone and Pluton).

The agreed variation (to the contract) is that the remaining $17.66m of Tranche 4 funding/shares (less the $3m paid yesterday) will now be paid in two instalments as follows:

- $2m to be paid within a fortnight (25 April), and
- $12.66m to be paid by 29 June.

This funding is basically going to come to Pluton via Timone, and Timeone will be entering into a separate agreement with its partner SS&T for a total of $70m to fund both this and the commitments for the development of Cockatoo.

Because of the dependance on this separate agreement between Timeone and SS&T, there are some things that need to happen before the payments are made. These are listed in the announcement on page 2 under "Details of the variation to the Subscription Agreement" paragraphs.

In my opinion, these conditions are not onerous and I'm confident they will progress.

As to your second question, this is a description of what is going to happen with the remainder of the $70m accessed by Timeone through its partnership with SS&T. Effectively, it will pay for acquiring, developing and mining Cockatoo (including the $20m Enviro Bond) and after all that money has been spent (plus $10.66m of the money given to Pluton in finalisation of the Tranche 4 issue) the Cockatoo mining operation with be a 50/50 joint venture between Pluton and Timone. All costs (and profits) will then be split in accordance witht he JV arrangement (i.s. 50/50 initially). For this reason the company has properly described it as a free carry through acquisition and a partial carry through development.

Cheers

Badfish