extract resources chairman's address 22/06/10, page-4

Hi All

Just found these comments from Ambrian on Kalahari's website.

The final paragraph may put some of the happenings of late into context?

Regards
Steve


Extract Chairman's address Zone 1 shaping up
22 June 2010

As part of the Extract Resources' Chairman's address, Extract has announced that it remains on track for a 3Q10 resource upgrade, but reiterated that this will focus on increasing the Zone 1 and 2 inferred resource to indicated categories to support feasibility studies (4Q10). Other key points were:

-work has commenced on site to extract a bulk sample from Zone 1;

-it is expected that a mining licence application will be submitted in 4Q10;

-confidential discussions with potential partners continue;

-in spite of recent media speculation, positive dialogue continues with the Namibian Government; and

-A$86.7m cash balance.

The key take-home from this news is that the company is aggressively focusing on the Zone 1 (and 2) area of the deposit. Whilst most juniors would chase headline resource increases, we think the ongoing focus on Zone 1 opens up the potential to sell or JV Zone 1 (probably to/with Rio Tinto). This would be an extremely smart move as it would potentially fund Zone 2 (and extensions) into production, with less (or even no) further dilution to Extract shareholders.

http://www.kalahari-minerals.com/News/Analyst_Research/Extract_Chairman%e2%80%99s_address_%e2%80%93_Zone_1_shaping_up_/News.aspx?id=211