Assuming BCI’s intention is to collaborate with API to jointly...

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.