6/20/2006 9:12:19 AM - MZC Holding Shareholder Comment: It is my...

6/20/2006 9:12:19 AM - MZC Holding
Shareholder Comment: It is my understanding from July last year that UCLs holdings in MZC will be a minimum of 38% possibly well into the 40 % range at completion of earn in.

In July 27 2005 announcement the following paragraph highlighted the role of the audit in determining finaly ownership:
"UCL expect the full Earn-in to be completed by the end of September 2005, following which UCL will request a half year audit and call a shareholders meeting to approve the conversion of the Earn-in plus the IMPASCO US$10 million credit, to new shares in the company"

Also in that same announcement UCL highlighted that IMPASCO will have 3 months after the earn in to make their election to contribute at 50% or dilute.

Given that we can't expect the financing to proceed properly without a clear picture of who owns what:
i. Has UCL requested the audit?
ii. If not when will it be requested?
iii. If so when is it likely to be held?
iv. Is it correct that until the audit is held and approved by MZC vote that UCL still technically holds the original 24.5% of MZC only?
v. What do you anticipate to be the most likely result of the audit?

Thanks in advance


Union Resources Reply: Thank you for your email.
The audit of Union's costs to end of October 2005 has been completed.
The shareholders meeting is due to be held shortly.
As soon as the matter has been finalised then we will make the appropriate announcement.

Kind Wishes

Rob