Ann: UCL: T/O Offer for UCL 2nd Supplementary Bid, page-2

re: Ann: UCL: UCL: T/O Offer for UCL 2nd Supp... "Market conditions and the nature and scope of the Wonarah Project have changed significantly
since statements were made in the Bonaparte Diamond Mines bidder’s statement concerning
project development timing. The reliance by the UCL Board on those statements is therefore
inappropriate. Minemakers has achieved a number of major milestones at the Wonarah Project
over the past 2½ years. "

Drummond simply can't be trusted IMO. It is easier to raise money for small projects. He sold Wonarah to investors as a simple DSO - load Wonarah earth into ships at Darwin?). He had no hesitation in taking investors' money for that and then recall he sold a huge wad of Minemaker shares to "pay down the mortgage" - I've got the BoardRoom Radio interview where he commnented on his share sale and then he changed the project's scale. He could still have gone ahead with the DSO, but he didn't. He is a master of unnuanced investor vocabulary. He describes Wonarah as World Class when he means the politcal/legal framework that Wonarah would operate under is one of the best in the world, but the projected cash flows are definitely not world class when compared with the costs of production. (Maybe there is some hope this dry kiln process will make it more economic? Less bulk to be transported if the finished product is more concentrated? e.g. if they make phosphoric acid on site at Wonarah). Dr. Reid, the former UCL MD, PREDICTED all this before it happened: if you recall Dr. Reid said at the time of the BON takeover that the time scales promised on Wonarah were ambitious. How right he was. I expect that is why he isn't running UCL anymore. Intellectually, he was a lot smarter than Drummond.

Satellite pictures seen by diplomats of the Iranians performing clean-up operations at Parchin make me optimistic that the world will come to the conclusion (to avoid a new cold war / Middle East arms race) that the only option is regime change. Obama has now since I last posted here committed himself to action on Iran within a year if diplomacy fails. Any form of regime change in Iran will make Drummond's offer look utterly derisory, IMO. UCL spent $18m proving up a technically and economically feasible mine. Usually you have to drill a couple of mines before you get that lucky, so the Iranians owe at least double the drill/BFS cost, IMO.

I don't give a stuff about Twynham's "non-disclosure" of the reasons for holding on to UCL shares. My own reasons (imminent regime change in Iran) are all I care about.