effects of the recession on vanadium, page-7

G'day Nose.

In answer to your question:

1. We do not comment on other projects.

2. As pointed out in the Stratcor report, if China were to produce the same quality steel as western producers, they would need to source an extra 118mlbs of V2O5 each year. We intend on producing about 24.5mlbs per year – which means more producers will be required to cover that shortfall.

3. You will also note in the Stratcor report that South Africa supplied ~27% of the world’s vanadium in 2008. However, you will also notice that their production has been declining consistently for the past 4-5 years. If that were to continue, then there would be an even greater shortfall in supply.

regards