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

I spent a bit of time comparing the March quarterly report with the December quarterly report. I have to say it appeared there was very little change in the reporting, some formatting changes, a couple of sections moved around but much of the March quarterly was cut and pasted from the December quarterly.

This lack of apparent advancement was exaggerated by the decision to include information about the FEED results in the December quarterly even though those were released in late January. I understand that decision because the December quarterly came out after the FEED results were released. But it also highlights that no substantive progress was made in April (if there had been they would have addressed it in the March quarterly).

Regarding EPCM (which is Engineering, Procurement, Construction management, and, Commissioning of facilities) there was clear progress as the March quarterly reports that the company has "materially" finalised negotiations with the preferred EPCM consultants but that the Board (presumably the joint venture board) has still to approve the arrangement.

I noticed that in the highlights section of the December quarterly there was explicit reference to the sourcing of debt but debt was not mentioned in the highlights section of the March quarterly. Instead in the March quarterly the project financing heading was "Project financing - Focus on debt and LSE dual listing" (that wording was not used in the December quarterly). In the March quarterly there was quite specific info about the LSE dual listing but more vague wording regarding progress with debt: "The Company expects receipt of non-binding expressions of interest [from potential financiers] in the June Quarter".

There was effectively no change in the wording used with regards the offtake agreements.

What I take away from the March quarterly is that:

1. they are about ready to pull the trigger on the LSE dual listing and that they intend to raise a substantial portion of the financing of the project through this action.

2. If there is any progress being made with regards offtake and debt agreements that progress is marginal: nothing of substance to be achieved in the June quarter and I am starting to wonder whether any agreements will be finalised this calendar year.

3. even though they have employees who claim to have skills in the various disciplines required to get this project up and running almost always they are using consultants to select contractors for almost all of the aspects of building and running the project. These blokes are not rolling up their sleeves and getting their hands dirty. Reinforces my view that this company's bosses are not fair dinkum about growing the company into a major mining house but rather are looking to dress the project up for sale.