Ann: Capital Raising and Project Update , page-30

Hi Westcott

I hear what you are saying, and I am certainly not suggesting that Australian banks have been typically competitive or interested for that matter in taking on financing of resource projects. Having said that, if you look at the current funding ability of many of the banks who previously were the first in line for these types of projects comparing now to 12-24 months ago, many don't exist and most would have severe cut-backs in their ability and appetite to fund.

If you lined up all the worlds' banks in order of market capitalisation and risk rating all 4 of Australia's banks appear in the top 15 in the world. My point is that they are least likely to have had their ability to finance decreased and they are still unlikely to look at funding anything. Most large Australian companies, like the ones you listed, generally use a panel of banks and the one I work for handles a portion of many you mentioned.

I would say there is minimal chances of securing outright funding in the next 12 months, the most likely outcome IMO is an alliance of some kind. It is my opinion only however. I personally would like to see the project delayed and funding arranged in a better market than to sign up to an unfavourable arrangement in the near term.

What do you think will be the likely outcome Westcott?

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