increased iron ore production, page-18

Measured figures can only be presented as such, after extensive close-space drilling and trench exposures. Indicated resources are still fairly specific, as they come from calculations within 25 metres of a drill hole and are supported by a minimum of two drill holes.

Any doubts, go to page 10 of Portman Mining annual report released via ASX on 22/2/05. They had 9 mt of measured resources and Cleveland Cliffs are buying them out for $700 million.

On the issue of PE of 5. All (or most)industrial companies and mining companies have gearing.

Remember Westfarmers borrowing $600 million to pay their shareholders a special dividend of $2.50. Western Mining just borrowed to pay a dividend to improve (increase) their debt to equity ratio.

WMR and other public companies say debt to equity ration should be about 40%.

Factor MGX very lazy balance sheet into calculations when you consider forward PE's. MGX have about $25 million cash.