its the nickel stupid

12 July 2007


Mr Matthew Fay
Adviser, Issuers (Perth)
Australian Stock Exchange Limited
Level 8, 2 The Esplanade
PERTH WA 6000


Dear Matthew



HALCYON GROUP UMITED (the "Company") - ASX PRICE QUERY


We refer to the Price Query received from the ASX today and respond as follows to the specific questions you have asked:

1. Is the Company aware of any information concernlng it that has not been announced which, if
known, could be an explanation for recent trading In the securities of the Company?

The Company is not aware of any Information concerning it that has not been announced which, If
known, could be an explanation for recent trading in the securities of the Company.

2 If the answer to question 1 is yes, can an announcement be made immediately? If not, why not
and when is it expected that an announcement will be made?

Not applicable.

3 Is there any other explanation that the Company may have for the price change and increase in
volume in the securities of the Company?

The Company announced today the appointment of Mr Iggy Tan as its new Managing Director and that
the Company will be looking to develop an exciting growth strategy based around nickel exploration and
production.

The Company is not aware of any other explanation for the price change and increase in volume in the
securities of the Company.

4 Please confirm that the Company is the compllance with the listing rules, and in particular, listing
rule 3.1.

We confirm that the Company is in compliance with the Listing Rules. and in particular, Listing Rule 3.1,


Kind regards



MANAGING DIRECTOR/CEO
Tel: +61 8 9481 2433