Ann: Update - Notification of buy-back - MGX, page-5

MGX has mentioned precious metals.

One of the several current undertakings MGX are currently doing is exploration work at Bailey's Find in the Western Australian Goldfields.

MGX has also mentioned they are focused on projects in base metals (including iron ore, copper, lead, zinc, bauxite and coal).

MGX have stated that they are looking at projects in Australia

MGX have several exploration projects in Western Australia, but have also recently mentioned Queensland.

All their projects to date have been iron ore and all have been in Western Australia.

Diversifying into other materials may be beneficial at times when a single commodity is being hit hard.

Exploration has been continuous for several years and currently ongoing in the area of Tallering Peak near Mullewa in WA, an area well known for base metals, as well as gold on nearby tennaments. There is also historical data on coal in the Mullewa area.

Tallering Peak was MGX's first mine and where MGX have built an excellent rapport with the local first nations people.

Peter Kerr often speaks highly of his highly efficient crew at Koolan, and MGX possess a significant amount of bulk handling equipment.

There is still no mention of the names of the four juniors that we recently increased our investment in to 19 million dollars.

John Welbourne, CEO of FEX, in which we are the hold 10.16%, has also mentioned diversification into materials other than iron ore.

Peter Kerr has recently stated he is supportive of FEX.

FEXs New Haul Trucking now 6 cents per tonne per kilometres and cheaper than rail.

FEX recently held back on a divvy on the basis of possible aquisition / expansion.

Our good relationship with FEX may well prove advantageous if MGX develop a project in the mid west area of WA, where currently much of MGX and FEX focus is currently located