i may as well ask...

This off to AGS this morning ...

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Dear Sir/Madam

I am a shareholder of Alliance Resources (AGS).

I note repeated requests for extensions for acceptance of the mining lease offered in respect of the Four Mile Uranium Project. All I understand have been at the request of the JV partner, Quasar Resources Pty Ltd. The most recent extension lapses 27 April 2012.

Can you please advise / confirm :

(a) that aside from conditions identified within the ML offer, there are no other pre-conditions, uncertainties or contingencies which would preclude or otherwise frustrate the JV from accepting that offer;
(b) the JV partners are diligently progressing the resolution of offer / acceptance uncertainties, despite the 'background' litigation between the respective parties;

Can you please also provide guidance as to whether the JV is confident that a suitable / acceptable resolve to ML offer condition uncertainties will be attained this side of 27 April 2012 or whether there is a likelihood or probability of a request for further extension.

As you will appreciate, the resolution / security of the underlying ML is fundamental to the worth of AGS.

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I also note that in the Beverley Four Mile Project public mining lease proposal January 2009, the following interesting comment was made:

"... If the Beverley Four Mile Project was not proceeded with, the existing Beverley Mine would run out of mineable uranium resources within two years, and be financially unviable, and would close..."[section 4.3]

Whilst I love a bit of spin just like the next punter, my maths suggests that 2009 + 2 = 2011 which I think is less than 2012. Given lead times to approvaly I suspect the JV partners are equally motivated to a resolve.

Time will tell.

All rampant speculation by a shareholder with a vested interest in a great outcome. Find your own reasons / research t invest!

Have a great day