less than aud $36 just, page-7

So they totally ignored my suggestions (in reverse chronological order):

Hi Maria,

That seems like the answer is that it won't be considered in depth because it is too difficult to figure out the numbers that will work.

As I stated in the previous email, 50% is just a number that can be adjusted. If Charge was willing to pay $36M for 100%, why would they not be willing to pay, say $30M for 83% or $24M for 67%? Also, ADY does still have a few million coming in from ore shipments. ADY doesn't need much capital to continue the iron ore operations right now, because they can't ship until next year and the on-site contractor has downed tools.

By the time ADY needs to start producing again, surely something will have happened with at least ONE of the lawsuits to provide cash to ADY, even if it takes settling out of court for less than the claimed amount to expedite the procedure.

Also, the market capitalisation of $13M is irrelevant to the value of a particular asset. The market capitalisation takes into account debt and the ability of the company to make money. The asset in question stands alone without any debt, so of course it will be worth more than the debt-laden, paralysed company.

If there is anything that I can do to help work out some kind of deal that can be pushed through, let me know, as I would be happy to help get this situation cleared up.

Regards,

********


2008/12/4 ADY Investors
- Hide quoted text -

Hi ******,

Thanks for your email.

The option of a JV for Rincon was the first option that the Board devised once the market situations had deteriorated so much that project / debt finance was not feasible. However, the parties contacted didn't show any interest in a JV.

Should the contract with Charge be repudiated, there is always a possibility of a JV, although having into account that the market cap of the company has dropped 50% since then and it stands at A$13m, it would be difficult to find a buyer ready to pay A$20m for 50% stake in one of the assets.

In an scenario where this happened, the A$20m would only allow ADY to pay part of the current debt:

- $11.8m for Hawkswood, assuming that an additional A$1m interest is not incurred for late payment.

- $4.6m + 8% interest, for Ya Global for three installments of US$1m due in Oct, Nov, Dec

- $1.9m to Australian private investors

and ADY would be left with:

- no working capital to continue the iron ore operations

- no working capital to contribute to the development of Rincon

- no cash flow from shipments due to the halt in the operations in Chile and the port closed for fruit export

- no funds for the repayment of the monthly US$1m + interest to Ya Global in 2009

In any case, we will have to see how things pan out over the next couple of days if the sale to Charge Resources goes through or over the next couple of weeks if ADY is to find another buyer.

Kind regards,

Maria Vazquez



From: *******
Sent: Wednesday, December 03, 2008 2:22 PM
To: ADY Investors
Subject: Rincon sale solution

Hi Maria,

Why can't ADY be the extra stakeholder in the sale of Rincon Lithium?

Couldn't we drop the price of RLL to around $20M, but take a stake of around 50% in Charge? This would keep all the shareholders happy and raise around about enough money to pay off the pressing debts. We could also get rid of the stupid 10% of the IPO at a 15% discount, which was a scam anyway. The numbers could obviously be fiddled with to make the plan work, but it would allow the sale to go through quickly and keep everybody happy.

Can you please tell me if this is a possibility and, if not, why?

Regards,

*******