article, page-9

So there can be no confusions as to what the letter is referring to note the following comments.

When the former tenement holder )Madison) was in administration/liquidation there were numerous discussions between Kare land owners and the Mineral Resources Authority and the court appointed liquidator over 2009-2010 in relation to the above subject matter.

At that time the liquidator was in the process of disposing of the Mt Kare Project (EL1093).

The Law in PNG permits the State to take a fully paid equity/benefit in a mining project by making a payment to the project holder calculated at a pro rata rate basis of up to 30% of sunk costs.

The approval given to Summit Resources in 2010 for transfer and renewal of the tenement was on the basis that at the end of the day, after the mine was established, and after all capital costs were paid for by Summit/Indochine, the State would forgo its right to a fully paid equity contribution to the project.

Instead, Indochine would free carry a 10% equity contribution for and on behalf of the land owner communities of Mt Kare (all relevant parties).

The idea was that the community at Mt Kare, long forgotten by the State, would have an interest in seeing the project succeed, as also in the case of Summit/Indochine.

In return, the state would leave equity participation matters solely between the community and the proponent/developer.

That is not to exclude state infrastructural contributions.

Indochine would free carry the community equity participation costs (which are tax deductable).

Eventually, the Land Owners Communities on and around Mt Kare would be the beneficiaries of a community development package/trust calculated as 10% of the net capital profit of the mine minus 10% cap-ex and operational costs.

The agreement was to crystallize upon completion of a land owners study prior to the grant of the mining license.

What was/is proposed was an entirely new agreement entirely unrelated to the previous agreement referred to in te letter from MRA attached to Jack's comment relating to the former agreemet with Madison which, in all the circumstance, has been declared by the PNG Supreme Court as null and void in 2010.

The fact that these matters are now on the table with MRA suggests that Indochine and MRA are currently discussing the grant of a Mining Lease.