LNR GENERAL DISCUSSION, page-752

Thanks GD for that summary.

I must admit that I have an issue with Resolution 2 "ADOPTION OF REMUNERATION REPORT
" and resolution 4 "APPROVAL OF LANTHANEIN RESOURCES LTD LONG TERM INCENTIVE PLAN".

Resolution 2:
I am assuming here that adoptrion of this report issues a Licence to remunerate two Directors with the $300,000 non-executive directors' remuneration pool. That will likely be $60,000 for David Francis and ~$240,000 for Peter Swiridiuk. I don't have a problem with the $60,000 for David Francis because as Chair and the risk that carries I think it's a fair remuneration. I do have a problem with the ~$240,000 for Peter Swiridiuk especially without any component at-risk as a performance bonus. Company communication over the last 12 months has been atrocious. In addition a ~$240,000 remuneration for a non-exec director in a company this size is over the top. We as shareholders should be given explanation as to why:
a) It is $240,000 and what justifies that amount
b) why none of it is at-risk performance bonus and instead giftedas a salary without performance accountability.
If Peter is providing other services to the Company then that should be a seprate contract and should not be paid out of the non-executive directors remuneration pool.

Resolution 4:
I have no problem with a long term incentive plan, however I would like to know what the incentives will be based upon. I want to see "communication with shareholders" included as an essential element underpinning those incentive rewards. Adherence(with some leeway) to drilling plans should be another. We don't know how soft or hard the performance indicators will be to warrant granting those rewards. When the communication has been poor, it erodes trust. When trust is eroded, shareholders will want to be more prescriptive about remuneration and bonuses, especially when they are asking to be able to grant thise incentiove bonuses for the next 3 years.


I will be voting "No" on resolutions 2 and 4 for those reasons.