Ann: Quarterly Report for the Three Months ended , page-16

re: Ann: Quarterly Report for the Three Month... Is this the beginning of the correction that has been talked about.

SFR and IVA have both come off their highs. Both have excellent copper prospects and fit the 50 to 150kt prod per annum. Both are low risk (Aust) and both are in an advanced stage. IVA is esp interesting as they may want to sell to fund Mongolia Copper with Rio. (that could be an agreed t/o rather than hostile.) IVA could strech OZL a little (consume all the cash) and we may need to borrow some, but P Hill is now generating 500m free cash flow per year. I could live with the risk.

HT1