Buckland Project, page-11

Assuming BCI’s intention is to collaborate with API to jointly develop the Buckland Hills contiguous deposits, the following are some takeout’s and activities from the WPIOP over the past 6 months.

• During the past quarter (Sept), APIJV Participants continued to assess options for an integrated rail and port infrastructure solution. Key WPIOP approvals continued to be progressed.
• Areas of potential project value optimisation and enhancement will continue to be investigated over the balance of 2016. APIJV owners are finalising a desktop study to consider an integrated rail and port infrastructure solution.
• Desktop study envisages a 40million tonne per annum project production rate over 20 years.
• Continued higher IO prices give rise to project development optimism.
• API have a JV agreement with ASX Red Hill Iron (RHI). RHI has a 40% interest. At commencement of production, RHI may elect to reduce its interest to a participating 19% or convert it to a 2% FOB Royalty on total RHIOJV production.