Concerned Shareholder, page-80

Its very tough around Weipa with torrential rain and this is also the case up and down the western coast of the Cape. Cyclone Trevor is more or less stationary close to Weipa and the rainfall totals are increasing rapidly. We have little contact with anyone away from town and I would say that Bauxite Hills would be affected for 1 or 2 weeks after this event. In terms of shipping and mining this would result in some delays to the anticipated early mining and stockpiling, but would not be impacting the mid April shipments at this stage. This late monsoon trough event was forecast and if the big rainfall totals continue for a few days MMI would then need to consider a release, but at this stage not really needed. Last year the mine was being commissioned and the Cyclone then affected the start up. I think this Cyclone will impact the region north of Weipa more intensively but bauxite Hills is set up ready to mine and ship and its a matter of waiting for the water table to decrease a bit and she is ready to go and they do have the modifications and expertise now with handling wet bauxite. I think that this Cyclone will delay us a bit and will be causing some concern as the extra stockpiles and early mining were going to advantage us for the next few months and as you know cashflow will be a major worry over the next couple of months.