Ann: Proposed Divestment of Paulsens East Iron Ore Project., page-38

Devils Advocate - they need a local port to make this work, could be $20m to pay their share of port before restart costs for mine / market cap is $15m can't cap raise it / they owe $11m AUD loan with PE held as security that got rolled have no way to pay $1m interest per annum let alone principal. pressure to repay. mine is small no scale, buyer pool probably minimal. didn't want to sell LEL at discount and wouldn't fund it all anyway. buyer payouts SRK and joins PoA pays those costs (assumed) then work cap to get going, could be up for $50m upfront before production. mine NPV $100m some risk premium for buyer to entice purchase. SRK have no way to fund this, now just a shell proxy for LEL with an 80% in a SA mine valued at between $10m-$600m over the last 10 years and web of interrelated coys.