Ann: Independent Calculation of Abu Dabbab Projec, page-8

re: Ann: Independent Calculation of Abu Dabba... Actually scrub the above analysis.

I updated my spreadsheet for the above quoted product prices and came to the quoted tax NPV(10) of US$605M which compared with the US$593 in yesterdays announcement.

Previous to this announcement I had used conservatively US$43.08/lb for tantalum under the offtake and used a lower price for felspar as per GIP's 18/05/11 announcement:

"Based on indicative FOB prices offered and present operating cost estimates, the cash operating margin for the production of a feldspar by-product could be between US$20 and US$25 per tonne of feldspar."

However, "Feldspar US$ per tonne FOB 35" is not inconsistent with the above statement. Consequently, Noah?s Rule could have used a higher Tantalum offtake price to come to a similar NPV.


I note that from the 18/5/11 announcement that:

"Revenue from the sale of 600,000 pounds of Ta2O5 pursuant to the OTA is expected to meet between 60 to 65% of project operating expense, whilst the terms of the OTA provide increased revenue to compensate for a corresponding proportion of any operating expense escalation"

Consequently, the OT price is only relevant for estimating the remainding operating costs which are 35% to 40% of the OT revenue.

Regards

SP