mmmmmmmmmmmmmmrealisation of funding short fall at March board...

mmmmmmmmmmmmmm

realisation of funding short fall at March board meeting (3 year mine plan)

either carry on and raise funds - nothing more than small offerings - and continually having to go to market

Don did all the negotiations and Shandong deal was the "most beneficial" in the end - synergies similar operations etc

Ind Report and FIRB: not a strategic company , majority stake , but Shandong will demonstrate that they want FML to run the company and give FML the cash to do so and provide "expertise" to do so

Shandong attitude: wanted to make sure FML support the deal and will support FIRB approval (Cubbie station repercussions etc)

FML will remain a "liquid" stock (49%) - build a "new base" and remain liquid

increasing margins and lowering costs

will it bring in Chinese component to work force: no - independent australian contractors as per tenders

possibility to import capital equipment at better prices





time to feed the hounds