allegiance mining looking great, page-4

Hi mm

I have been away for a few days so have not been checking HC.

I see there is an announcement today regarding the smelter and a few cashflow projections.

I think our Mr Howland Rose is probably still hopeful of getting one of these processing plants, (helleyer or renison) very cheap.

The way I see it, these plants are about as useful and saleable as a multi level carpark in the sahara desert to the administrators. Allegiance doesn't need to be the willing party to one of these transactions. Hopefully they can get the thing in a firesale. Maybe the plant also has lots of depreciation allowances built in.

Other then that i guess the pathway is basically laid out. The next announcement should still be the mine approval and I am sure some financing options later on.

SG took on the role for options (exercisable at 8c) only. They are obviously confident in the thing not to require up front payment.

There is no drilling at the moment as far as I know as a worthwhile resource has already been identified. Maybe there is a minimum amount of work going on to fulfill the obligation to work the other tenements. The priority is obviously getting the Ni out of the ground. I think once cashflow and sales get going in 15 or so months the money freed up to do more exploration will really yield a big expansion to the resource.