Ann: 2010 AGM Managing Director's Address , page-2

Having read through the Managing Directors Address, just a few comments:

He mentioned a couple of times how well the share price and market cap is doing but the fact is the share price is 20% down from this time last year.

"Our capacity to fund these activities very much lies in the prevailing share price and the Board?s ability to maintain a stream of funding"

I dont think the market is too excited by the magnetite and it is hard at the moment to see where the gain in the share price needed to get the options in the money will come from.

"but if successful should see production of magnetite
concentrates commence around the end of 2015."

I think this is the first mention of a possible production date, it seems a long way away seeing as Jupiter mentioned a possible production target of the end of 2013 in their recent presentation. There will be a flood of IO hitting the market in 2012-2014 and the iron ore price will surely come down from current levels with the increased supply. Ive read that long term Iron Ore prices are projected at about $70/tonne so mining costs will be critical.

They have re-commenced drilling (an announcement on this would have been nice) and their PFS is due around the end of June next year.

It would be positive to see Lion increasing their stake though im sure they were also expecting a large DSO resource, would love to know their thoughts now.

Just my thoughts, what do you guys reckon?