Ann: Response to ASX Query , page-10

It is interesting to stand back and look at the near 5 months since FAS announced its company making deal on 5 June 2013.

A Google search tonight on the funder Alliance Super Holdings Pty Ltd reveals very little. Indeed it still does not have an active website and one would have thought that in this day and age a website was an essential business tool.

No mentions anywhere on Google of any other deals involving Alliance, despite its claims to being exposed to deals worth billions. One would have thought any lender such as Alliance who is willing to enter into irrevocable funding deals with the likes of FAS for hundreds of millions of dollars yet does not seem to require basic project documents such as a PFS or DFS would be writing deals hand over fist. Yet it appears FAS is the only Alliance deal that has been made public.

Of course a PFS or DFS might be quite revealing. It appears that the FAS gravel type deposit would involve a high strip ratio (lots of gravel needed to produce salable ore) so lots of earth moving, lots of (simple) processing which will require a lot of water. Last time I looked FAS were trying to find water some 200kms east out in the Nullabor.

Of course SHIP is well located near the Trans railway, but with no offtake, no port access,no detailed project assessment and a conditional irrevocable funding package with a lender about whom there is virtually no public information, this has to be a stock for the true believers.