Ann: Update - Project F Operations/HOA's with JV Partners, page-2

Let us now do some crude math on the limited info available & forecast out to breakup at the end of April:

-100K ton (incl coking ) @ say an average FOB price of $100 AUD/Ton FOB. = $10 mil AUD

-Shipping late June-July & Payment July.

With cash in bank of $17.106 mil @ 31st Dec & forecast outgoings for the Mar Qtr of $$5.639 mil,
We have enough cash to at lest last us until 30th Sept without any revenue, IMO.

Based on the current ramp-up, let's say that by breakup we have 100K ton to sell (incl coking coal)
at say an average of $100/AUD/Ton/FOB........That's $10 million revenue by the end of July.

From May onwards, now let's assume that the crew are deployed in making the "12 month/yr"
road at say a kilometre a day ; that will take us into July and then let's say trucking with dog trailers
then commence which would double production to 2K ton a day+ (There's oodles of overburden
for road making)

This should land at least another 240K tons of saleable coal for payment & shipping before freeze-up
in November (revenue say $24 mil AUD, IMO)

By then we should be on our way, IMO.

Do others have any comment, please?

MM

PS: At some point in the year coking coal will reach 30% of production which will lift the above $ guesstimates considerably and more than account for local royalties etc, IMO.