Ann: Prominent Hill 2011 Mineral Resource Ore Res, page-2

re: Ann: Prominent Hill 2011 Mineral Resource... Interesting day. OZL down, PNA up, a difference of nearly 5%.

Maybe the market did not like the resource and reserve statement.

The way I read it and interpret it (DJ_420 - please correct me here if I get it wrong - you are the geo, not me) is that OZL will move to u/g mining during open pit mining and after the open pit is exhausted. With the plant already operating above name plate capacity, it will be interesting to see how the additional ore will be converted into concentrate.

There are 8 years of copper reserves (818kt) with more than 1mt of copper in the Malu u/g in indicated and inferred resources. My expectation is that the mine life will be much longer than the analysts are currently planning for.

Holders also need to remember that the data cutoff is 30/6/2011 (5 months ago).

I get the impression that OZL has a plan and are working to that plan. OZL has the cash on the bal sheet and the fcf from operations, so they are not constrained in that regard. (Other mid tier miners are having to do (or have done) capital raisings to fund growth (KZL, HGO, IGO). OZL is buying back shares.

In the current economic climate, a strong bal sheet is a big asset to have.

HT1