Ann: New Cornerstone Investor Underpins Tanzanian Strategy-STA.AX, page-2

Interesting development. A welcome addition of funds and strong corporate support. This is a vote of confidence at a difficult time for the company. Assuming the strategies are strong for Tanzanian sands, this should put them in a good position to bring them to fruition in the next 18 months.

Disappointing that it's occurring at the current levels even though it's positive that Tembo are paying above market for their contribution. Will Mike Folwell bring his big capping stake down now? He's certainly hampered the company's ability to place at a better price significantly with it positioned where it was.

The terms of the rights issue at 0.5 cents with attaching options are a dilutive effect that should continue to hold the company's price down for the time being. I do like that it's renounceable. At current level that's not going to be of much value to shareholders but I like the principal of being able to trade the rights if people don't want to participate. That's a philosophical position, on balance the pressure from Folwell and dilution should hold the stock down - unless the directors start buying up again to support the cap raise. I would think it would make more sense for them to wait and accumulate tradable rights on market and exercise than do that though.

I'm still supportive but I'll be weighing up do I buy in the issue at 0.5 cents or look to pick up cheap shares on market?