Ann: Notice of General Meeting/Proxy Form, page-33

One of the more remarkable contradictions was the assertion by Quantrill that the operation was unprofitable because costs of the mine were running at $6m per quarter, yet towards the end of the meeting he admitted that the company had already terminated all costs in Brazil and had only the small corporate costs of running head office. So why not just sell the stockpile on the market? Even at $40 per ton for trucking, $10 for loading and $50 for shipping (if these figures are not overstated), there is still $40 per ton to be made. With over 400,000 tons in the stockpile, that is $16 million. I didn't pick up a clear answer to this other than the Board carried out its assessment when the iron ore price was $115 per ton and still stands by it at today's price.