demerger, page-2

Hi golfbravo,

Nothing's been announced on the demerger lately so we assume an announcement on the egm will happen shortly. I still think the egm will happen at the agm. If they cant manage that the agm might get postponed by a few weeks.

The ady sp has been smashed by the market meltdown, a lack of announcements and forced selling due to margin calls. But some updates have come through via shareholder emails.

Basically, Shougang has approved the $40m SBLC and the off-take agreement. We are only waiting on ady and their bank to agree on the 40m repayments etc. This is not expected to happen before Sept 30. So Credit Suzie is expected to provide a bridging loan of 20m to pay out the Hawkswood loan and get the capex happening.

I cant see, any problem, particularly as so much money has just been injected into the money markets by governments.

ADY has also just sold a US$10m spot shipment. So I expect the finance side of things is being resolved right now and an announcement on that and possibly the demerger will happen this week.

kacy