Ann: Reponse to ASX Query re Appendix 4E , page-3

Hi Wal

Not sure what the annoncement is about but I dont think its going to affect the price either way.

The share price has been hit hard with the future earnings downgrade (due to ozl and Rio Trinto shelving projects)but I think the fall has been well overdone and presents a buying opportunity.

The positives are that AAX has about US$20 billion of tenders curantly in study stage with tenders for the Newport expansion and another 3 billion contract in Morocco.

This means that over the next coming months we could see a series of positive news which could immediately impact the shareprice.

Any improvement in comodity prices will impact favourably with AAX as many projects that have been delayed or shelved will come back online. The 1st of these may be Martabe gold

6 brokers have moved to a buy for this stock with a buy of $2.45 recommended.

The negatives are that AAX relys on some sort of Resourse recovery over the next 2-3 years as part of its growth strategy. However with 60-65% of its revenue mostly recurring and no major debt due till 2011 the company is pretty good shape.



In my humble opinion I think that this has a potential of a recovery of shareprice of 30 - 50% in the short term and 100% by years end.



However this is totaly relient on Management living up to thier reputation.

Just as a side note I see that AAX's founding director, Bob Thorpe, has just been taken on by Australian Solomons Gold Limited (TX;SGA)as a project Manager. Could be one to watch