Ann: Quarterly Activities Report and Appendix 5B , page-2

re: Ann: Quarterly Activities Report and Appe... Re China, the way I read that is that we are near 2/3's the way through Stage 1 and are awaiting $1.4M in payments before continuing past the present part of Stage 1. I had thought we had been paid in full for this part, it appears I may have read the last announcement regarding that wrongly. Or at least jumped to the wrong conclusion.

["Of the fees outstanding $600,000 relates to handover of the first three packages which are complete, a draft of which has been provided to the Haoqin Mining joint venture for review."]

["The $800,000 balance, when received, will trigger commencement of the final two packages for Stage 1. This amount will be received following appointment of the procurement and construction management (PCM) contractor by the project partners."]

It appears we had to await the appointment of a new CEO to receive $1.1M, now we await appointment of PCM to receive further monies already owed ($1.4m). Is it just me or is that a Hell of a way to do business.

Does anyone else interpret that as that work there at the moment is still in hiatus until monies received? As the following in page 2 paragraph 3 seems ambiguous once we take the 1.4m info into account ....

["received a further milestone payment of $1.1 million before withholding taxes), representing the trigger payment for commencement of a further three engineering work packages for Stage 1."]

Overall in short (even though a bit convoluted) that all reads to me that we received $1.1m that triggers the commencement of the next 3 parts of Stage 1, but we may actually haven't commenced as we are still owed $1.4m for handover which is awaiting PCM approval, a draft of which has been submitted to the JV, with the big BUT from them is that it will be paid after approval of the PCM who (just by the way) has yet to be appointed it would seem.

Sheesh, the JV should run for political office here with the way they work. And some Chinese businesses complain about OUR (Govt.) Bureaucracy.

No wonder CNX hasn't produced any timetables.

I'm not worried about the project continuing, otherwise they (JV) wouldn't be searching for a PCM. It just doesn't do much for timeliness from my perspective if all of the above is correct.