Ann: Sale of Mayoko-Moussondji Iron Project, page-5

IMO companies should never sell off their prime assets in a down cycle for a pittance...having said that it is probably a good price given the low quality of the resource and with a lot of money to invest to get the mine into production.....38.5mt at 42fe...for 5million...

Will the money be paid back to shareholders as a return on capital I would hope so...

They are talking about the Badondo reserve as being their new prime asset but they don't actually have any mining license or mining convention approved over this tenement or any significant reserve...and given the current market conditions there will be added difficulties.

What i cant understand is why the lease over Badondo has not already been secured or at least extended...is smells a bit fishy...

It should be noted that they previously put in an application for Badondo and it appears that it may have been knocked back, and that is why they are reapplying...If I was the government I would be looking at offering the lease to another company that is more advanced in the region...and prepared to not just sit on the tenement....EQX by sitting on their hands and not doing anything with Badondo could result in them not receiving the mining license or convention.....

It also tells me that the Government are placing additional conditions on eqx before they grant the license, they are making it tougher...or are they considering other parties. So it appear that there is still a long way to go before they even receive the license and there is no guarantee that they will receive it All these studies usually takes a few years to complete and a lot of money.

+Drill program - confirm mine life and actual resource...
+ feasibility study
_ environmental study
+social impact assessment
+ Community development plans
+ completion of technical reviews by relevant government agencies.

T