LYC - expansion, page-4

The problem in the past was firstly a part time CEO and the lack of management and engineering experience in a new and developing field. At the time the political problems were used as a cover up excuse for the lack of progress. This came at a time when China was putting pressure on price and supply to RE uses outside China.

The result was that LYC had a plant that had to be partly rebuilt for it to function, staff that had to learn how to operate the beast and management faced with excessive costs.

This is past history. In a way the share alterations are one way of burying the past and moving on to the position aimed for by previous management but not achieved. It is a major way for current management to show their achievements and to demonstrate another and different chapter in the Lynas saga.

There is no political risk. Lynas has established itself as an important part of the country's industrial might and a demonstration for others to follow with envy.