mikayla, page-40

there are a few ways you can invest in a company.

The first is by buying equity- what we have all done. At this stage no one of 'importance' has held any equity. Och-Ziff have bought in 5% of the company so at least that is a good start. Most of the equity is held via small time investors (8000 of them approximately) who have no loyalty and can get in and out whenever they want. Bigger equity holders have to be committed to a company to own such a large stake as it takes a long time to accumulate said position and an even longer time to sell. If required to sell, a subbie holder will likely destroy the share price for weeks months or years. Back to equity investing at the end.

The second way to invest in the company is via the funding of debt. While this investment isnt classed as 'ownership' this is arguably the more risky position and you will find that businesses willing to invest into a company via debt facilitation are quite rare. In terms of CCC we have the biggest coal trader in the world investing in CCC at an interest rate that is BENEATH the bond rate. This is unheard of for an explorer, especially one in 'risky' ol south Africa. This highlights the bullish sentiment of industry 'insiders'.

The third way to invest is to J/V with said company, in essence the company investing is paying their way in at a premium price to take a % of the profits. This essentially shares the profits but forces the 'purchaser' to put up most of the CAPEX for said project. We have this in terms of KORES a state owned Korean company; highlighting the urgency the asian countries have to secure coal supply.

Generally J/Vs and Debt faciliation are the hardest investments to secure, these require companies to have complete faith in your company and its ability to reach its targets, as usually they involve huge huge sums of money. Essentially these investments are all or nothing as KORES and/or EDF have no way of getting any money back if CCC never produces 1 tonne of coal. They have no way of selling out, they have no 'stop loss' they are in it for the long haul.

In terms of securing investment, CCC has most of its debt funded and the J/V in place. In terms of any world class 'bigger' player who may be interested in getting involved in CCC, the only avenue left is via equity investment. Therefore the 'next' big investment in our company will have to be via purchasing equity on market.

Wow long winded, apologies if the grammar or editing arent great.