Ann: Monthly Activities/Appendix 5B Cash Flow Report, page-72

Yeh thats why we are all so pissed off - PEK as a company has had 6 years to study Tanzania refining options but now have been left holding the baby and need to compromise or there will be no progress.

The fact is they haven't explored a Tanzania refinery and it is only now where the SML is being traded (held ransom) for Tanzanian refining. Every country leader would want the same corrupt or not (especially given how clean the ore is from an enviro perspective) - we are not disputing this.

It is a very interesting situation with lots of moving parts involving lots of countries (Tanzania - the Government, Australia - the company, UK - refinery location, China - recent major shareholder).

I think management need to realise quickly there is not a chance in hell Teeside is happening - and no brown paper bag will work. Now is the time to shit can Teeside and start making refining in Tanzania a reality. The $1m cost of purchase for Teeside is yes a sunk cost but they can recoup this in many ways throughout the life of the project and also the options that expired (think it was $1.4m raised) offsets the loss on Teesside.

Forget it....Teesside isn't happening!

The sooner management understand this the sooner we can send trucks and diggers to Ngualla!