Ann: Update on operations of the Company 5 Jan 20, page-2

re: Ann: Update on operations of the Company ... on top of this very positive mine development / jorc update we must factor in the EXPECTED PRICE INCREASE arising out of the shortage of supplies now caused by the extensive damage to coal mines in queensland's bowen basin from ravaging floods. traditionally the hard coking coal from the bowen basin 'makes up to more than half of the global seaborne coking coke' - according to sarah-jane tasker in the australian business, friday 31dec2010 - therefore the consequent upward pressure of premium coking coal price in the coming weeks is tremendous. we should expect the current price of usd240 to breach the usd300 in no time.

bhp, wesfarmers, anglo american, xtrata n rio have invoked force majeure declarations on their supply contracts. holders of gnm should resist selling until they have fully enjoyed the fun.