latest from ucl website

Excellent questions posted by Paul who is a regular over on ShareScene. The web site q&a is a good forum folks and if we use it right we can get at least a bit of information that wouldn't necessarily be released in announcements.

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Feedback: Paul Kehoe Various


Hi Rob

Several questions if I may:

1. is UCL still intending to move their head offices to Dubai or Europe as had been mooted?

2. Mining CAPEX costs continue to rise worldwide. Is the US$1.6 billion still appropriate? If not, what is your current guestimate?

3. Obviously, with UCL's current market cap you cannot raise near enough equity for even a small fraction of the US$1.6 billion sum. Are there any plans to develop the project on a staged basis or alternatively farm it out to a miner with much deeper pockets.

4. It has been about a year since the previous shareholders presentations. Once the ownership issue is sorted out, any chance of putting together another series of presentations?





Union Resources Reply:



Thank you for your questions, answered in number order below:

1. Until the issues in MZC are finalised there are no specific plans to move the office. The change of the head office will be based on what is considered best for the financing and development of the project and may only involve the new top management of the company, that will be assembled to develop the project. I would think that a presence in Brisbane will be maintained probably for backroom accounting, ASX liason and as a technical base. The later due a result of the excellent access to relevent expertise in Brisbane and the speed we can get visas for technical people from Australia, which is critical for technical expertise, thanks to excellent support from the Iranian Embassy in Canberra

2. The $US 1.6 billion includes up to date high steel, metal and construction costs and hence requires no revision. The view is that we should be able to reduce it in the final phase of the BFDS and by maximizing Iranian content.

3. We are aware of the concerns you express, and we are constantly looking at the different options under both the subjects you mention, and will make appropriate announcements if/when any firm decision are made. As per the FS the best economic option is to build the whole project as one stage. However, we are currently determining the "financeability" of the whole project with the help of our financial advisors Societe Generale and that study will no doubt dictate our final approach. Our Iranian partners do support a smaller first stage development.

4. A roadshow is possible once the future contributions to MZC are finalised in a new development agreement and we have finalised what we are actually building as the first stage.

Regards
Rob