article on alliance resources, page-9

Rosco,

There is still uncertainty, in my mind at least, of what rewards will accrue to AGS once the mining commences.

The AGS management have never, to the best of my knowledge, confirmed that they can do their own marketing. The details of the marketing arrangements covered by the JV agreement are, or were, "confidential".

What would happen if Quasar entered into a long term agreement with Heathgate to sell them all the production at cost. Quasar, and AGS, would then run at breakeven and Heathgate makes "super" profits from all the production.

I would be a lot more confident if Shareholders were informed of the marketing arrangements, also whether H/Q have a pre-emptive right of purchase of AGS' 25% under the JV agreement.

Best wishes,