Ann: Drilling Programme Complete , page-21

Nose!

1) I did say DMA, Citic Midwest and PDY have infrastructure issues. ROY have a project & infrastructures, I used to be a shareholder and sold out make good money. ROY targets 8 Bt, very similar to CAP. Like CAP, without JV partner ROY will be issuing lots of share to fund explorations to get to 8Bt.

2) CAP's cut-off grade is 12% and got 1.4Bt @ 15.5% (only 60% owner). Why not change cut-off grade to 23% (FWL's cut-off grade), then how many Bt?

3) Clive is a bit of problem, but once people look at Citic next door (not Citic Midwest), then people know about mag. projects in Australia. Most of mag Fe projects can NOT get finance.

4) CAP's 50 yr mining is based on finding 6Bt+, ie issuing more shares to fund cost of exploration. PDY also promising 6Bt & ROY is targeting 8Bt, similar to CAP & MEP.

More mag. Fe tonnes do NOT always translate to higher share price, but without JV partner will certainly translate to more share printing.

5) FWL did show est CAPEX & OPEX on their website, now updating. I think IRR was around 20% similar to CAP and other companies, and CAPEX is about $800m. I'm not impressed with 20-25% IRR (eg CAP, ARH etc). Lots of project with higher IRR than 23% & bigger NAV can't get funding.

6) Why did the first Chinese partner go? Hard to say, I didn't invest in this one back in 2009/10. May be due to GFC, lots of project got abandon.

Why did TFA invest in this project? Hard to say. Why did TFA buy more shares 'on-market'? Hard to say. My avg price is 5c, many thanks to SpringTree & Sin-Tang pushed down price from 15-20c.

All I know is TFA paid much more for FWL shares than me & they pay for explorations ($20m) unlike others will have to issuing more shares.