Ann: Corporate Restructure and Share Purchase Pla, page-36

re: Ann: Corporate Restructure and Share Purc... I know why the LCY holders are in a fluster with this announcement - it means that HAW is serious about maintaining their interest in Mt Bevan.

With LCY not being able to earn their 60% interest in Mt Bevan until April 2012 (at best), now is the time for HAW to reorganise and recapitalise. Yes, they will take a short tem hit. But, they will have two separate entities focussed on different activities (of gold and IO).

This restructure/ recapitalisation is stage 1. Surely, a consolidation will be on the cards once the in specie distribution is made.

To me, the big thing will be what arrangements HAW will make with its 40% of Mt Bevan. Now they will have it structured as a clean IO play, they may attract a joint venture partner (as LCY have done with NMDC). JMS or Pallinghurst are two that come to mind that would be very interested in 40% of Mt Bevan (and an equal say in the overall development of the project).

This is why LCY/ NMDC would be very disappointed. Either they will now ned to be working together in a joint venture to deliver Mt Bevan or they will need to buy the 40% of Mt Bevan that is not theirs at the right price. As the Directors keep reminding us: 100% of the 617m ton IO resource at Mt Bevan is values at $174m. Imagine what 1.5-2.0 billion tons is valued at??

The new HAW will use this number (and the forecast January 2012 upgrade) as a benchmark for negotiations with JV parties or purchasers in the future. Thanks LCY (and your wonderful shareholders) for doing the work for us.

HAW holders must be patient, but we will be rewarded.

Time to ignore the HC threads on LCY and HAW for a while. There will be a lot of garbage flowing that will simply not be productive.

Bas/ jenx/ Trees et al, make sure you don't get too caught up in the negative banter that no doubt will occur. Good luck with your holdings - I agree with your strategy of holding LT.

Cheers.