Ann: Placement , page-40

Queries sent to Jill Thomas Investor Relations this morning. Maybe I might a response..... If I do will be sure to share with everyone else....


Dear Jill,

Can you please clarify for me the following points/queries around the $40m capital raising announced on the 12/6/12. Again I raise the same concerns as I did last year when the $60m capital raising was announced as since that time I’ve been acquiring further stock in SDL..

• Again why is the raising only for institutional investors and not all shareholders?
• Can you confirm whether Hanlong took part in this latest $40M capital raising? If not why not?
• If such a raising is required why such timing bearing in mind the Hanlong SIA currently hanging over the heads of the company?
o Can’t the money be raised through Hanlong to show commitment to the project let alone the takeover? They need to stump up over $1.7 Billion for the SIA to be implemented I’m sure a lazy $40M should be chump change for them and could be provided as a letter of credit or loan considering they want to own the entire company?
o Couldn’t the timing of this announcement have been made following the next deadline for the SIA 30th June (at which time I hope SDL management walk away from this SIA as I hope Hanlong can’t meet the next condition) or can I assume the funding is required because SDL have been informed that
a) Hanlong won’t be able to meet the next deadline of the SIA and hence need cash to continue normal day to day operations, but still want the deal on the table hence another delay to the takeover time table
b) Hanlong have decided to walk from the deal and to put it politically correct SDL management will only come clean on this when the next timetable schedule deadline comes up.
c) Hanlong have no cash at all to support any part of the SIA let alone a $40m raising because the first place you’d go to get commitment about someone’s involvement in a project/company would be your potential suitor especially if you have said you see it as a friendly acquisition in the absence of a superior offer.
• If the timetable isn’t met will SDL walk away from this deal because Hanlong have been given enough chances to meet their obligations according to the original SIA timetable
• When will the next announcement regarding top 20% shareholder ship be made?
• Are Hanlong acquiring shares on the market through alternate investment vehicles which increase their stake greater than what has been announced to the market to date


Thank you in advance for taking the time to respond to my queries. I do truly believe we have a great project in Western Africa which can be developed to be a major Iron ore producer in the world.