market update, page-60

Hi Westcott,

You need to understand the context of those sorts of MOU's and the typical reasons for them being negotiated.

In fact, ask yourself the question: Why would Core Mining and SDL negotiate and sign an MOU in the first place?

The primary reason is that it is a requirement of both JORC guidelines and feasibility studies to demonstrate a reasonable infrastructure solution.

1. JORC - in order to convert a Resource to a Reserve, you must be able to demonstrate that you have a realistic, cost effective infrastructure solution to get your product to market.

2. Feasibility studies - even a PFS must be able to demonstrate that you have considered how you will get your product to market, and back that up with agreements (eg MOU's).

The MOU's that SDL had with the Chinese regarding port and rail construction contracts were also purely for the basis of finalising the DFS. Again, it is a requirement of a DFS / BFS that you demonstrate how you are going to build your infrastructure, and with who.

So, the Core / SDL MOU should be looked at in the context of Core needing an MOU as support for its JORC reporting and feasibility studies.

No more, no less.

MOU's are a typical, no strings attached, method of ticking certain boxes in project development milestones.

They do not, and should not, be interpreted as pointing to a bigger picture.