is there more news to come, page-16

Thought I'd ask Mr King what he thought of the paltry $2.20 on offer, Least he replied, promptly. Thought might be of interest to others

Thank you for your e-mail of 4 August, which arrived while I was away from the office until today.

My report about the Australasian Resources' project was made for the company and based on the assumptions and analysis set out in the report. I have not been in contact with the company since 2007 and have no knowledge of its recent activities.

Under UK regulations I am not permitted to provide advice about the prospects for the shares of individual companies direclty to investors

Conditions in the iron ore market are currently more favourable, and iron ore prices are higher, than expected in 2006, and interest in new iron ore projects remains very strong. On the other hand, capital and operating costs for new projects have increased sharply.

For his information, I am sending a copy of your e-mail, and my reply, to Mr. Andy Caruso, Managing Director of Australasian Resources.


Kind regards


Yours sincerely


JAMES F. KING
Economic adviser to the industrial metals and raw materials industries

Spoutwell House
Spoutwell Lane
Corbridge NE45 5LF
England

Telephone/telefax: +44 (0)1434 633646
e-mail: [email protected]

Date: 6 August 2008