Ann: Appendix 3B , page-4

I sent the following email to Mr Finnis on 25 Feb, and thus far (4 days) haven't received a reply.

"Dear Mr Finnis,

By way of introducing myself (a shareholder), we talked by phone a month or so ago on general matters relating to CloncurryMetals/Global Resources, and I remember your generosity with your time and insights on that occasion with appreciation.

I'm contacting you now because of the announcement yesterday of the placement raising $1.44 million. At first glance, the source and terms of the placement struck me as a bit disappointing, and I would greatly appreciate your comments on the following aspects:

1. I calculate the placement price, at 6c, to be a 28.6% discount on yesterday's pre-announcement share price of 8.4c. At first glance, that deep of a discount seems (to me) an excessive inducement, particularly given the relatively small amount of capital involved and the attractiveness of Global Resources' projects. It sent a message to me, on this occasion at least, that shareholders may have to be wary of more dilution with Global Resources than with its competitors.
2. I don't understand why existing shareholders are bypassed in placements like this, particularly given the relatively small amount of capital involved and the deep discount applied. I would have thought that existing shareholders, being believers in Global Resources, would be less likely than Bell Potter clients to immediately divest such shares for a quick profit. I would also have thought that placing shares with existing shareholders would send a message to other potential investors that Global Resources wants a stable, committed shareholder base and is willing to encourage shareholders of that kind. By comparison, it seems to me that the current placement could discourage both potential and existing holders, and suppress the share price until it is clear that quick-profit selling is exhausted.

3. I suspect that the stringent credit conditions of the global financial crisis have made even amateur investors very wary of, and averse to, the profit impacts of overdilution. I'm concerned that, if future placements are not made more advantageously than the current one, Global Resources could become over-diluted, with few investors willing to hold long-term for fear of quick-profit sell-offs, serial raisings, price stagnation, and consolidations. I am very impressed with Global Resources' prospects at El Rodeo and elsewhere, and would not like to see this happen.

I am a member of the forum "HotCopper" and would appreciate permission to relay your responses to this email to forum members for their information. Several members have expressed concern about the terms of the placement.

Thanks and regards"

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