Ann: Execution of Agreement with Trinity Mongolia, page-3

re: Ann: Execution of Agreement with Trinity ... Hi Cuppa. They have very high hopes with a 200mt indicated/measured target and the MOU on the surface looks a v. good deal for CEO. Mongolia is the right place to be into 2011 IMO - you just have to looked at HUN as a comparison as they have an exploration target of 250 - 500mt at the The Unst Khudag mine (market cap is $178m) - they are more advanced.

Personally, I envisage this to re-rate much further. Looks nice and tight which is perhaps indicative as the vol today is small which gave any hot money the window to cash in. Luck to those that got on early as this one appears serious with sound management.

Sydney - Friday - November 12: (RWE Aust Business News) - C@ Ltd
(ASX:CEO) has entered into a Memorandum of Understanding with
Trinity Mongolia and its Mongolian subsidiary, Trinity Development, to
jointly identify and develop exploration and mining projects which meet
CEO's target criteria.
The primary focus of the agreement is to identify coking coal
deposits located in the southern provinces of Mongolia.
Trinity will be responsible for the identification and technical
evaluation of opportunities in Mongolia and will assist in the
negotiations to secure ownership of such opportunities.
Trinity will also assist CEO by conducting agreed activities
undertaken in Mongolia, including legal and financial due diligence,
technical services such as drilling and initial interactions with
potential project vendors.
In exchange for these services, CEO will provide Trinity with
monthly advances to cover local outlays.
Upon identifying an appropriate opportunity, an unincorporated
joint venture will be established to acquire the project assets.
CEO will hold a maximum 90pc interest in the joint venture, with
Trinity having a 10pc free carried interest until the project has
achieved a 200Mt JORC compliant indicated or inferred resource.
Upon reaching this milestone Trinity will be required to
contribute to expenditure on the JV project proportional to their
interest.
Trinity will also be able to participate in an additional 15pc
interest in the project, within 60 days from the establishment of the
joint venture.
This interest will be acquired upon Trinity reimbursing to CEO
all costs paid by CEO, up to the time of Trinity's choosing, that are
attributable to the project on a proportionate basis.
The joint venture will establish an operating committee,
comprising representatives of the joint venture parties, who will have
casting votes in line with their proportional interest in the joint
venture.
The operating committee will be responsible for the appointment
of an operator, project budgeting and overseeing of the project.
Mark Earley, a director of C@, currently holds an approximate
10pc interest in Trinity Mongolia.
The terms of the agreement with Trinity have been reviewed and
approved by the remaining members of the board who do not have an
interest in Trinity.