Ann: Rare Earth and High Purity Alumina Projects Acquisition, page-62

Hi UFX,

IMHO, once FNT have established a JORC resource for Tolukuma, and hopefully in a couple of years at Murraydium (REE) and one or more of their other REE projects as well, FNT will JV the most attractive projects with a major miner, who can then do all the heavy lifting, accordingly spend the necessary and enormous amounts of capital required to bring a new mine and production facility into being. Under these types of JV's, I see FNT retaining a 20% interest and being "free carry" i.e. I highly doubt that FNT intend to try and fund even one of these potential projects alone.

I totally agree that that FNT have done everything over the last few months. The only thing I don't quite understand is why the market seems to be almost completely underestimating the huge leap forward that FNT have already made. Perhaps investors are simply waiting for more proof of the potential of these various projects, which is fair enough.

Considering that FNT's recent REE etc. acquisitions are all in Australia, I believe that once their potential has been confirmed, the FNT SP will undergo a significant and almost immediate upward rerating.

After this upward rerating by the market, the level of the FNT will be commensurate with the success of each of their projects.

With all respect to MorningStar, who currently see the fair value of the FNT SP at 3.6 cents, my current personal fair value for FNT is 7 cents.

I think that we can both agree that the next few months will be highly interesting.

Cheers.