Ann: SCN: Fenix Iron Ore JV Update - Pharos, page-24

Hey Ned,

Predominantly on the numbers of the current iron ore deposits and Scorpion having 30% of it, i wound down the current iron ore price to the current lowest grade pricing ratio and applied the fenix model to it with an $0.80 dollar conversion ratio.

i found that even if fex strike the lower grade <62% at 1 of those drilling sites that this project still had value at worst case scenario.

Anything above will be a positive.

Scorion although i'm very new to it, has a low shares on issue not lots of performance options at $0.10.

if they have a hit the earnings/ NPV could be multiples of Fex, and fex has the smaller resource land area size.
knowing the above surely Fex will find the ore over the scorpion tenements.

But like everything in life there are no grantees.
i used USD $120.00 <62% and FX$0.80 conversion all off the same 1,250,000.00 tonnes per annum as a guide.

i did the numbers before i bought and was happy with them at that stage.


Rooks