Ann: Iranian Project Update , page-2

I have been out all day so missed the announcement. Chris Jordinson is not exaggerating that this is indeed a major step forward for MZC and therefore UCL. After the delays and blocks of the last 5 years by IMIDRO it is intensely significant that they have transferred their interest to completely private parties and have done so by directive of the President. I am now confident that the Mehdiabad project will be moving forward and interested to see there is Chinese involvement.

The challenge will be to see how the MOU is worked out in the final agreement. Technically UCL is entitled to virtually 50% of MZC by right of capital expended but I think currently sits around 25%. I am expecting that a resolution will lead to our entitlement being less than the 50% region however anything is better than the nothing we've been facing. This is a major project, genuinely world class, so a decent slice will be very valuable for UCL.

2011 is shaping up as possibly a breakout year - finally!!