discussions with management

Dear All

I had a lengthy chat with management last night.

All the news appears pretty much out and the reaction of the share market is viewed as extreme to say the least.

Under the circumstances, MRE is doing extremely well relative to the other plants in obtaining gas and getting it to the plant at least run it at a reasonable rate.

There are active discussions going on with Government.

Despite the Chinese stainless steel market being described as "soft", it has grown by 16% year on year.

The outlook on the overall nickel price was perceived as being stronger than the first half by the industry so all this is unexpected.

Rumours have been circulating about a short selling play by the RBC.

It was noted that Glencore were buying at $6 barely a month ago and that Glencore are in a superior position to assess the market.

The clear impression left after my discussions was that this is all well overdone but we are nevertheless in a storm at the moment.

Regards EOS