Ann: Karara Operations Update , page-74

Hi Dui, $A/US assumption was 0.95, full production starting 1st Aus'13 and many other assumptions were made. The purpose of the analysis was to try to get a view of the order of magnitude of the cash flow issue facing GBG/KML as Karara ramps to full production volumes and quality. About $A50K short at the KML level, but should be okay paying the first China Dev't Bank payment in Nov'13 which I thought wasn't too bad bearing in mind that GBG has about $35M in the bank and KML is going to ask Ansteel for more IO pre-payments and to delay China Dev't Bank payments to help. sdo