Ann: March 2014 Quarterly Reports , page-16

I think they got the mining licence pretty quick so that was a good result by management.

It is the mining convention which is the next cab off the rank and hopefully that is not too far away either.

My understanding is that the Convention locks in all the fiscal terms such as tax and access to rail/port.

I think a JV won't occur until we get this convention which I assume is not too far away considering the Government have already approved the Exxaro convention and we are next door neighbours looking to do exactly what Exxaro are doing.

I think once we have the convention it is game on as you can go back to potential JV partners with some firm numbers and basically say here it is...take it or leave it.

I think the Updated PFS is likely to incorporate leasing which could bring the capex down substantially. I remember reading somewhere that about $80m of our capex is rolling stock which can all be leased. This alone could bring Capex down to $150m which is very cheap for a 2mtpa initial operation.

Furthermore we have had a resource upgrade since our scoping study was released and it wouldn't surprise me to see opex drop as they initially focus on only the high grade shallow material discovered too date. I am actually really looking forward to the updated pfs as I think it can remind the market just how low on the cost curve we are and more importantly a capex of $150m or lower will show the market that this IS a project that WILL get off the ground unlike so many other small resource stories.

The share price is disappointing but it doesn't look like any of the top 20 are reducing and these guys own around 80% of the company. So one would assume the holders selling at these low levels are mum and dad investors who are spooked by both the iron ore spot price and the EQX share price decline.

I continue to hold and believe that the project remains commercially very viable and is worth multiples of our current market cap. It is up to management now to realise the value we have in Mayoko and Badondo down the track.