HiI was finalising last year's tax and with a sinking feeling...

Hi

I was finalising last year's tax and with a sinking feeling again faced my constant foolish trading and belief in BMN which lost me close to $100 000 year. So I had a bad week, so sent off an email to Banners, voicing my concerns about their cautious presentations to the market and the chance of a hostile take-over, etc. I received the following reply:

"Dear Mrs ......

Thank you for your email ...............(introduces himself, but don't want to name him).


We are of course very aware of the share price movement over the last 6-12 months since the new management team came into the Company. We have a strong belief in the Etango Project in Namibia despite the disappointing market reaction received late last year to the results of the Preliminary Feasibility Study. A major issue we have faced is that a large number of retail shareholders who came into the stock at much higher share prices in the 2006-07 uranium boom have sold out ? many of these shareholders have in our view not understood the fact that uranium is sold predominantly into higher-priced long term contracts with end-user electrical power utilities, and not into the lower-priced and infrequently traded uranium spot market (a point which we have emphasised in our presentations). A key strategy in fixing the issue of Bannerman?s shareholder base is to introduce a higher proportion of professional institutional shareholders. Following our efforts last year, we now have North American, European/UK and Australian institutions building their positions and owning 20-25% of the Company. This is a trend which we are aggressively working to continue.



Regarding your comments about marketing, the new team at Bannerman is a professional project development/operating team and not a market promotional team ? promotional activities might be sufficient for initial exploration achievements but are not sustainable for project development activities and the construction of a substantial mining operation. The work required in a feasibility study needs to be thorough and professional, and is often perceived not to be exciting for short term investors. The fact that Bannerman is at the forefront of the pack of many Australian companies seeking to develop their uranium projects means that we have taken much of the brunt of thorough work and realistic cost estimates, albeit estimates with good opportunities for improvement. The Etango Project is of substantial strategic value and so the feasibility and development work needs to be thorough. That being said, we are actively marketing the Company and presenting to interested investors whenever feasible. Bannerman presents at least once every two months at various resources and uranium investment conferences in Australia, as well as undertakes quarterly investor marketing trips across the world and makes available a range of retail investor broadcasts ? for example, through Boardroom Radio. Our publications and presentations can be found on our website at www.bannermanresources.com.au.

Regarding your comment about takeover predators, this is of course a risk for Bannerman, however you should note that the Board and key long-standing shareholders own over 20% of the issued shares, and offer solid protection.

The focus of our efforts in 2010 is on the Definitive Feasibility Study of the Etango Project, including enhancements to reduce expected operating costs and increase mineable resources, and receipt of the mining licence (the application for which was lodged before Christmas). In addition, we have stepped up dialogues with potential off-take development partners and finance providers, and are expanding our near-project and regional exploration drilling activities.

I hope you see the value in the Company that we do. We appreciate your support."

Cheers

Taurisk