Ann: Message from the Chief Executive , page-5

Hi rods, the discomfort Lawrenson referred is definitely not 50/50 as it goes back further than the current standoff. Remember this was never a JV with MAK to begin with but with BON who MAK acquired. At that time UCL tried to counter the MAK offer for BON, rightly being concerned for MAKs long term intentions. That was demonstrated not long after when MAK moved on a couple of the longer term UCL shareholders who had been around for the Mehdiabad project and subsequently with other corporate issues.

unfortunately MAK have been the source of a lot of antagonism along the way including holding back progress on Sandpiper over the JV agreement. We are probably a year or more behind where we should be for that early slow down. That aspect mostly resolved mid to late last year when MAK finally realised they need Sandpiper up and running but the history is not positive.

The particularly galling thing for UCL would be fhat in nearly every respect, apart from financial contribution, MAK has been the junior partner at Sandpiper - lesser quality asset contribution, less expertise, fewer useful contacts, less attention and effort. They did contribute Mike Woodbourne from BON though and he has been good. I am also thankful they got rid of James Collins-Taylor from our board.