ann report, page-5

Hola Towball,

Personally, I don't see dilution as being a significant risk here. The evidence at the present time is that PEN is working hard and fast to acquire sufficient rights and prove up sufficient resources to ensure that the viability is ensured.

If you take a look at the development model proposed (for Lance) in the revised presentation last week, the figures appear strong and factor in capex, financing costs, royalties etc.

A couple of other points pointed out by the lads already -

* CAPEX for ISL is significantly lower (cheers Dhuy),
* there are additional, resources being worked up at present (e.g. Karoo taa NKLEX) which could be moved on in order to raise further funds (which even then on current figures, doesn't appear to me to be essential!)
* there is SA... but I have other thoughts on that and think we need to see how PNN/Sino's mining lease application in Crocker's Well pans out to get some indication of the strategic value of that for a start.

You may also note that the estimates are based upon a price of $65lb for U308 which all analysts seem to to agree that is likely conservative into the future. Think the estimated grades are also somewhat lower than we expect als0 - although someone else may have a better grip on that than I).

Current cash position should be sufficient in terms of achieving resource estimates and permitting processes, and the "associates" look to be in for the long term.

SO... TOTALLY NOT WORRIED!!!! :)