Ann: Response to Speculation, page-854

We really do not know that until any offer materialises.

The present value of the company vs the future value will need to be analysed.

Whilst I have previously used the Beer target of $0.63 to be a reasonable indication of present value I have allowed for the further derisking as we move closer to commissioning and the PFS for doubling production.

ASSUMING: commissioning occurs in the specified time frame and there are no issues and that and the PFS indicated doubling can be achieved within the next 24-36 months using internal funding then a derisked value around the $0.75-0.80 mark would be more reasonable (IMO).

If that was the case then a premium for control in the 25-35% range would locate a price in the $1 vicinity.

But we do not know what is in the future and we need to make a number of assumptions about prices, offtake, further reserves, other tenements and even the value a foreign investor would put on our coal assets.

There is the potential to sell the main part of the company and retain the shell. That is the main mine and equipment and spin it off into the production side and the exploration side but this adds another level of complexity. I am sure everything will be discussed in these meetings though. It is clear that the demand is for the mine and the reserves it is sitting on. That is where the majority of the understandable value of the company lies.

From my optimistic view our other tenements and the potential of us being able to mine gold as well means I place additional value on the company but those making the acquisition may not.

The cleanest option will be for an attempt at control of the whole of AJM and then, if achieved, they can spin off other assets they don't want or need.

I am a part of this company in large part because of confidence in the management. If they go then I probably will too.

If this control transaction is going to happen then the only way the board is going to recommend it is if they think it is worthwhile. I certainly do not want to be a minority shareholder with Optimum (or whoever is in control) dictating the direction of the company for essentially their own interests.

Let us wait and see what eventuates. In the interim we should see a steady (if bumpy) climb to the Beer target (I am thinking it being achieved possibly mid to late next quarter) if there is no control announcement.

GLTAH