Ann: Response to Media Speculation, page-90

Hi Thesi

I've been on holidays overseas for 6 weeks and away from the market for most of that time but I see all remains on track with GXY and am surprised the shorts are now over 15% now - a dangerous game being played IMO - I can visualise a jump in the SP of $1.50+ on an announcement regarding SDV.

Factual reporting by the commentators in the papers remains poor as usual with reporters continuing to work off incorrect numbers and not even being able to distinguish between A$ and US$ - there is a big difference.

Directors are continuing to work to conclude the best deal (both offtake and funding) for SDV which when finalised will fund our remaining majority share of the SDV development, provide us with a buyer for the end product and provide us with additional cash to fund further work on both James Bay and Mt Cattlin which itself is providing us with more than A$100m pa in free cash from operations - we still have up to A$200m in tax losses to offset initial profits.

I note you mention "airconditioner" - I haven't seen any comments from him for a long time - are you still in contact ?

We remain on track - happy days ahead .....