Ann: Quarterly Report and Appendix 5B ending 30 S, page-8

re: Ann: Quarterly Report and Appendix 5B end... Zed, no-one's dreaming; here are your answers.

What is the spot price of processed MnO2 - anybody know?

2,000t was sold for $0.55M according to the quarterly. This equates to $275/t. And this was for a bulk sample, with no crushing or benefaction!! If this was sold at gate, which seems to be the case, then it would have cost very little to produce: less than $50/t in my opinion just doing a couple of very rough figures in my head.

What is the mining cost?

For the bulk sample, refer to my point above. For full scale production - involving a crushing circuit - productivity costs will naturally be higher, but so will the price of the product we are selling because it is of a better quality. You'll have to wait for them to finalise the crushing circuit before demanding OPEX figures.

What is the corporate cost?

Admin cost $0.2M last quarter. On an annualised basis, this equates to $0.8M of corporate overheads per annum, which is very low considering we are a company in production and likely to book an ongoing profit very shortly.

Local tax?

Pretty sure company tax in Zambia is 35%. No surprises here. Every country has a figure around this mark.

Shipping cost?

Won't be necessary because we will sell a product at FOB prices in my opinion. This price is lower than CIF, but negates the need to cover shipping fees and insurance.

I hope you are better informed for having these answers zed. For what its worth, I am very pleased to see that we managed to sell a bulk sample at $275/t considering it probably wouldn't have been of the sort of quality that we will produce in full scale. This is even more impressive given that manganese, like most base metals, has been in a slump recently. That's a very competitive price!