hows that for inside info, page-11

re: estimate of current auz value long way to go AUZ is clearly demonstrating that both the quantity and grade of its nickel resource is increasing i.e. Blair Deeps drilling is hitting grades of 12.5% nickel. So assuming that current production rates / grades stay around 350 tonnes per quarter of ni and are now unhedged AUZ should recieve A$16.36 per pound (assuming spot prices stay around US$14 per pound). Total operating / development costs are around A$9.97 per pound, this produces a cash surplus of A$6.49 per pound. At 350 tonnes per quarter this equates to A$4,997,300 of profit / annualized this is around A$20,000,000 of profit.

This number assumes that nickel grades stay around 4.8% BUT deeper development / production on the Blair Deeps work may substantially increase this grade so we can assume that profits will increase substantially. Reseources of nickel are currently around 5,000 tonnes but this number looks set to increase substantially. Assume that resources increase to 15,000 tonnes and quarterly production rises to 600 tonnes at a grade of 6% the mine has a life of at least five more years. Profit per quarter becomesA$8,566,800 / annualized A$34,000,000 profit.

These are very positive numbers for a business currently capitalized around A$13,500,000. IF we take into account the potential of the property as it currently stands (incl PIO JV) a reasonable valuation would send the price up to around 10 cents from the current 3 cents.