Ann: Company Update - Shareholder General Meeting - 19/9/2016-TIG.AX, page-6

While the update of 19-06-16 says:

• "The purchase of 8 Scania 6 x 4 wheel drive 32 tonne capacity haul trucks."

The photograph, however, shows new Scania 8x4 trucks (GVM 32 Ton)

There is a difference in payload of at least 5 ton a unit which, over 8 trucks 24/7  with a turn around time of 4 hours makes a difference of 1344 ton a week of coal shifted. By the way, these trucks have a capacity
of shifting 350,000 ton a year (roads/weather permitting).

If the terrain permitted, dog trailers could be fitted which could lift this by 50% or 525K ton a year.

@ a margin of $50 USD/ton 350K ton would produce 0.9cEPS or  a SP of 6.3c @ a P/E of 7
@ 525K ton/yr this would' IMO produce an EPS of 1.35c/EPS or a SP of 9.45c

How many more errors are there?

mm

By the way if this were OZ we'd use Road Train side tip Triples of 145 ton GCM & 90 ton payload.
Two such roadtrains would do the work of the 8 x Scania 8x4s but I guess wages in Russia are low
and winter roads would provide traction issues for roadtrains.

PS; Could someone familiar with the JV details please let us know who the JV Partner is and
what are they negotiating?

mm