march quarterly , page-5

Dear Klvnwng

I had an interesting and positive chat with Peter Johnston this morning.

The disruptions to production were early in the quarter at lower prices. Production for the last 6 weeks has been stable and strong.

Cash is very strong but will only be mentioned in half/full year reports.

No target price was mentioned but the later Xtrata or another player leaves it then the higher the takeover price is likely to be.

$10 is very possible particularly if there is real speculation on a takeover and heap leach kicks in nicely. A takeover would probably need to be in the range of $11.50 to $13 if done at year end into the first half of next year.

Peter's personal sale of shares was driven by his super requirements and restricted trading, not his view on the share price.

Regards Eos