Ann: SDL China Iron Ore Conference presentation , page-12

re: Ann: SDL China Iron Ore Conference presen... A few observations....

1. It appears that NDRC wants the project to progress. Otherwise there wouldnt be all these stipulations, they would kill it.
2. Given the importance of the project, NDRC may want to see it in SOE control.
3. Hanlong is under pressure to negotiate with the partner/s as China has the ultimate say. If HL aquired us first, the power would be with Hanlong.
4. I suspect Hanlong was never going to develop this anyway so it may be now about the "clip".
5. Africans are likely to put some pressure towards a resolution.
6. More steel mill partners not a bad thing as it shows interest and consortium desrisking.
7. I sense that there is a PLANB that has been cooking, whether a TO or another consortium, who knows.
8. I think the chances of Sundance walking on Term Sheet failure to deliver are very real now.
9. Given POSCOs MOUs consortium viability starts to look interesting.

The idea that has been discussed here that it is about Chinese machinations, is reinforced by events more and more.

The only question for us I think is whether NDRC backs the project or not. I think Yes. The configuration of who, when and why, IMO will be worked out by the Chinese.

Remembering that the Term Sheet is about sufficient advancement in talks. If NDRC IMO believe that a suitable balance of power exists in the deal, then all go. Hanlong has little choice.