Ann: Mineral Resource Upgrade, page-647

If the price paid to HIO is the previous 30 days VWAP before the call, then deduct 10% discount: it would be great deal because it gave HIO a powerful headline punching exposure. And that was how we understood it.

Secondly, I remember I talked to Glenn on that day of the LDA announcent and I said to Glenn along the line "this deal should be used only as a marketing tool for the company. It should not be used to actually raise funds". In other words HIO pays $4mil for a great marketing PR deal. As for the 71.5mil options at excercise price of 70c down the track I don't think anyone complain too much about it as they would excercise them at multiples of 70c.

On the day of the LDA ann, the sp closed at 13c. Sp went to more than $1. Look at the average sp of the last 4-5 months, it must be more than 60c. So, how bad is it? I know it has been A MONSTER investment return for many early holders, including me, either through partial profit taking or complete sell out.

Even at today sp, it is still 200% higher than that 13c sp at close of business on that day of the LDA ann.

IT IS ONLY NOW WE KNOW THAT SHARES ARE ISSUED TO LDA 30 days in advance as part of the terms and conditions of the deal that make it a bad deal in my book.

Anyway, only around 10-12mil shares to go and sp will shoot back up higher again.

Hello POSCO.