geothermal project email

Thank you for voicing your concern regarding the geothermal project.

The project presented itself following observations made during exploration and development work on our nickel projects. It presented an opportunity which would have been amiss of us to ignore and the board deemed it appropriate to secure Allegiance's interest in the areas to the benefit of all our shareholders.

Allegiance did not get side-tracked looking for a change of direction but simply saw an opportunity to enhance shareholder value.

Minimal costs have been incurred by AGM and it has in no way impinged, nor do we intend it to impinge, on funding, commitment or focus on our nickel venture, which I am sure you are aware is fully-funded and progressing well.

We advised the market in May this year that the geothermal project would be "separately funded but will utilize the Allegiance support facilities on the West Coast."

This is still our intention - no impact on AGM funding and provision of AGM support facilities to support AGM's equity interest.

In summary, we see geothermal energy as a win for Allegiance and we look forward to your continued support.

Yours

Tony Howland-Rose