Ann: Retraction of Pre-Feasibility Study Production Statements, page-2

21. If the answer to question 20 is ‘yes’ please provide the basis for this conclusion, commenting specifically on
the $5,000,000,000 CAPEX cost estimate and HAW’sfunding assumptionsfor its share of the cost.
• HAW has significant shareholder links to the Chinese government
• HAW may seek additional shareholder capital to fund the project
• The JV agreement provides a number of options for each JV partner which includes –
- Full proportional participation
- Partial participation which would deliver dilution of the JV partner in the project
participation
- No further participation which would result in transition to a royalty stream
- Disposal of the JV share to the other JV partners
- Disposal of the JV share to a 3rd party
- Disposal of the royalty stream
Which of these HAW embarks upon will depend entirely on the state of the economy, the iron ore
price, and the consideration offered for any of the above disposals.


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