Under a ‘two-tiered’ offer structure, Murchison is offering a...

Under a ‘two-tiered’ offer structure, Murchison is offering a higher price for Midwest
shares if Murchison is reasonably satisfied, prior to the end of the offer period, that
Midwest will not incur a material tax liability if Midwest sells a 50% interest in the Weld
Range and Koolanooka projects to Sinosteel Corporation.
The Base Price offered by Murchison is 1 new Murchison share for every 1.16 Midwest
shares held (the “Base Price”).
The Base Price values your Midwest shares at $4.38 each and represents a premium of
25% based on the closing price of Midwest shares and Murchison shares on
9 October 2007.
The Higher Price is 1 new Murchison shares for every 1.08 Midwest shares held (the
“Higher Price”).
The Higher Price values your Midwest shares at $4.70 each and represents a premium
of 34% based on the closing price of Midwest shares and Murchison shares on
9 October 2007.
The Higher Price will be paid if Midwest provides information so that Murchison is
reasonably satisfied that Midwest will not incur a material tax liability if Midwest sells a
50% interest in certain of Midwest’s projects to Sinosteel Corporation.