Ann: Ceasing to be a Substantial Holder - Tattarang, page-85

On the 22^nd February I emailed PH stating that I thought the reason being given for Tattarang’s sell down was unconvincing and that why would AF have a need to ‘recycle cash’? That I believed the poor SP performance was largely a result of investors being spooked by AF’s departure.

All this against POS hopefully being on the cusp of production and a rising NP.

I received a prompt response from PH and this is a summary of his comments;

On Wyloo/AF

· Advice to him is that Wyloo is being run like a fund, rebalancing and buying /selling equities and there is not an endless supply of cash from AF.

· There is more liquidity in POS today, allowing large block trades, which was recently done.

· The announcement that IGO and Wyloo are looking jointly at a Ni refinery in WA suggests Wyloo may have other ambitions in Ni in WA.

Other contributing factors to the SP performance

BMM selling 1/3 of their holdings, the 3Bn SOI together with profit taking, lack of news flow since SS drilling programme, general market sentiment and the fact that the BFS on BS was still 4 to 5 months away. Also adding that the SP was about fair value.

I am prepared to take this at face value as I believe PH to be credible and hope that things do fall into place over the next 12 months.

It is a tough hold though, especially as the SP and NP continue to diverge. How did the SP ever get to be16c??