email to mmn

Email sent Sunday, 31 August 2008 9:13 PM.

No response to date.


Dear Mr McNeil,

As a long term Shareholder I have the following query with reference to the three main reasons for the requirement for equity finance detailed in the Letter to Investors contained within the 1 for 3 non-renounceable Entitlements Issue Prospectus, namely:

1) Please advise the current performance of the recently installed and commissioned Merrill Crowe plant. Is it operating per the design specifications for silver recovery, quality and characteristics?

2) Has the Merrill Crowe plant been successfully placed "on-line" and is it now in continuous service?

3) What are the planned upgrades to the Merrill Crowe and EMEW Electrowinning Plants, and why is the upgrade necessary?

4) What is the expected increase in silver production and recovery after the upgrades?

5) Will the design of the upgrades be undertaken by an external engineering company experienced with design, construction and commissioning of silver extraction plant?

I don't believe the information requested above has been adequately detailed in either the Prospectus, or other Company correspondence to date. I believe it would be advantageous to provide a more detailed explanation to all Shareholders regarding the Merrill Crowe and EMEW plant upgrades.

In my opinion, it was evident from the previous 1 for 5 non-renounceable Entitlements Issue lodged in December 2007 that Shareholders are becoming less inclined to support the Company due signficant delays experienced in bringing the Twin Hills mine to full production, and the continued need for equity raisings for upgrades to the mine.

I and other Shareholders I know are seriously considering why we should participate in the current equity raising. In my opinion there is not enough incentive to participate in the Offer. A minimum of two (2) free options should have accompanied every New Share as a means of compensating long term Shareholders holding the MMNO options which are now very likely to expire worthless in October 2008.

Thank you in advance for your response.