buy v sell, page-42

the following extract from exergen's indo presentation that included the DICE info is also very important for MNM's prospects:

'Page 3
Exergen: Our Strategic Intent

In Australia, Exergen has secured a pathway to an estimated 1bnt of 55% moisture brown coal.

With our partners, Tata Power, Itochu, Thiess and Sedgman, Exergen is developing a $2bn, 12mtpa CHTD treated coal export project in Victoria.

With CSIRO (Australian Commonwealth Scientific & Industrial Research Organisation), Exergen is developing a high efficiency, low emission CHTD coal / water mix fuelled engine (DICE) for domestic power generation'

the 'pathway' is obviously the 100% MNM owned BM project. under the MNM/exergen JV the coal is split 50/50. there is an estimated 2 billion tonnes of CHTD suitable brown coal at MNM's BM tenements, so exergen are estimating their 50% at 1bnt. the 55% moisture they mention also matches BM according to MNM ann's.

It is also very positive to hear exergen saying that Tata, Itochu, Sedgman & Thiess will be 'developing a $2bn, 12 million tonne per annum treated coal export project in Victoria.

that reference must also be to MNM's BM ground, as exergen has no other brown coal available to it in Vic.

if this is formally confirmed by the series of MNM/exergen JV's that are due to be completed by August 2011 MNM will have to be re-rated based on it having an entitlement under the exergen JV to the revenue generated from 6 million tonnes worth of thermal coal equivalent product.

at say $100 per tonne MNM's share of revenue generated by the BM project will be 6 million x $100, or $600 million per annum.

exergen's estimated project life at BM is 30 years.