Ann: MYL Enters Into Binding Commercial Agreements, page-8

Lets put this quickly into perspective for existing shareholders as I have had a little bit more time to review.

I am drawing upon over 20yrs within the opaque world of insolvency

Hartree had made an unproven claim for $38m against the former owner for breach of the offtake agreement. I say unproven as It has not been tested , it has merely been admitted by the Liquidator ( and MYL Board ) . Claims for damages are just that , a claim with is usually a shopping list for every damn thing. General damages claims are usually taken with a grain of salt by a liquidator because usually there isnt anything to pay however they are required to enquire and test such a claim if there is a pool of money . The difference here is that because MYL has effectively agreed to pay Hartree in shares for whatever they claim it pretty much discharges any onus of proof from Hartree or enquiry that a liquidator may make.

Hartree recieves the issued shares in lieu of the unproven damages claim.

The damages claim , which I hasten to add I have not read, will be the economic loss for the life of the earlier offtake agreement. I do not know the terns of the earlier offtake agreement but I wouldnt be surprised if it differs much from this new one.

Hartree is now being granted a life of mine offtake agreement heavily ( almost exclusively ) weighted to Hartree despite it getting every single uncontested claim in cash and shares already.

For instance the liquidator has admitted a claim of ( i think ) around AUS$22.6m for a US$11m drawn down less than a year ago. MYL is paying this. Unbelievable return if you can get it.

Maybe many wont actually understand the above. The Board is , imo , just showing how out of their depth they are with dealing with Liquidators , Secured creditors and large multinational dealers, Hartree has been provided the opportunity to double dip on the offtake, having already been compensated for the last one .. go figure

lastly I admit that if you dont have the right background then its easy for these lop sided deals to slide through

BTW Liquidator has a yr to dispose of its shares . I expect that will keep a lid on sp until all sold
From a liquidators perspective , it pretty much as to engage a broker immediately to start offloading when trading starts ( as Liquidator does not have a "mandate" to seek profit on trading ) subject to those sales not materially impacting on the sp. ie the Broker will provide a trading range for shares up to 70c and try and offload asap. Im guess the broken may start with a 10% discount give or take to the opening price of 70c and seek an offmarket sale as the easiest and most efficient method .

Sorry for the long post. I made it as simple as I could.

wom