Ann: Quarterly Activities Report, page-3

Good points Chookboy. Our management are fully aware of the scaled U prices and the effects on our bottom line. They will not enter into contracts of 100% at the lowest price, the contract prices will be stepped and we will obtain contracts at the higher end and progressively prices in between, Duncan Craib has stated this. The longer we hold out, and we have the cash to do this, the better chance of receiving a higher average price. We are in the strong position, eventually the utilities will need to contract, as their stockpiles dwindle more the pressure increases and we are one of the low cost/early starters in the market, the longer we wait the more they will need us. I'm happy if nothing happens for another 6-12 months, based on UXC's last announcement, we are in a deficit of 57 million pounds per annum, and the screws are tightening each month. This is a game of chicken and the first to blink losses.