my chat with ian kraemer ..md..

Ok, I will try to summerise the conversation that I had with Ian K (MD) on Friday afternoon.. Was probably a good idea to record the conversation as my memory isn't that great, but i will give it a go.

I first introduced myself to Ian and then finished it with "you probably don't know who I am.. I ema..." he responded straight away "I know who you are, the data you forwarded on regarding the phosphate tenements was extremely helpful". (Slappi, I didn't take all the credit for it, your name got dropped).. He actually said that this data is going to be used to assist with the up and coming desktop study and field work which begins in the first week in July (a bit over a week). He has just hired a local well know Geo who will be focusing on these phosphate tenements. He will be working closely with a university graduate during the month of July walking the tenements, collecting rock chip samples etc etc before compiling all the data together which will identify potential locations to progress the program further. This will include the surveys and drilling. He hopes to have commenced drilling before the wet season in December and have results back before Christmas. He mentioned that it may be difficult to secure a drill rig in the area, so this is certainly one of his priorities at the moment.

We chatted about the companies with nearby tenements including URM, STB, MAK etc. I suggested that these tenements could be very promising and given that the total of the mantle tenements are 4X times as big as MAK's there could be a substantial amount of phosphate they are sitting on. He said that Mantles are more like 2X the size of MAK's tenements as many people don't take into consideration the tenement of MAK's to the South West of their main tenement. (I suggested that he have a read of the recent URM announcement as the grades were showing to be substantial). He certainly is well aware of the potential of the Georgina basin, and was well aware of the RIO drilling which was done back several years ago on the now MAK tenements.

I then brought up the article which was published in the Cairns Post on Friday.

I particularly highlighted the paragraph which stated "Mantle managing director Ian Kraemer said discussions with the Djungen People had been very positive and he hoped discussions over an indigenous land use agreement could be finalised early next year." His response was, "well the journalist called me yesterday and asked me several questions.. one question was directed around time lines until the deal can be finalised with the traditional custodians and whether it would be next month.. Ian advised that journalist that he didn't want to give time frames at all and that it was simply progressing well and that any time frames would be unfair and disrespectful to the Djugen people. (we all know what journalists are like.. they've even put words into my mouth a few times and I have very rarely been published..

He suggested that the announcement was simply to update the shareholders that the negotiations have been progressing well (hence exchanging a draft ILUA), but he would have thought that the market would have read more into Mantle acquiring the 100% of Mt Mulligan and that this shows how well the negotiations are going and the confidence he has in them been successful!

We talked more about Mt Mulligan and I asked about the site. He said you can literally walk around the tenement and see coal veins (I think he used the word veins) visible on the surface..From his comments, I reckon there is alot more coal then we expect as there a great deal of unexplored area on the tenement which could really build the size of the resource.

So in summary..I wouldn't be holding your breath of you expect the keys to Mt Mulligan to be delivered in the next two months.. having said that expect more progress updates and other works to continue during this time! These things take time (thanks Slappi for this link), and there is plenty of red tape to get through before having unrestricted access to the tenements. He shows and displays alot of respect to the Djugen people and has built up a real good relationship with them. He said that CSM is certainly looking like the best options at the moment, but this could very well change down the track as more options and variables are considered. Overall he was very upbeat about the way the negotiations were going (and rightly so), and that right now he is constructing the building blocks to potentially make Mantle into a very large and successful diversified mining company. He said that the next 6-12 months are going to prove some very exciting times! :D

The phosphate project is now certainly near the top of his priority list... He wants things to progress fast here, and this is clear by the recent hiring of the new Geo to focus on this project!

I asked him about cash, and he said they have about $3.2M in the bank (cant remember if that was the exact figure), but he said that they are traveling fine, and will do usual cap raising and right issues along the way as they need further cash injections to progress their projects (don't expect anything in the near term)..

Guys.. Ive probably left a heap of conversation out, but please feel free to ask me any questions and I will let you know if I talked about it and whether I have an answer.

In short, I hold and I hold for the long term. I would suggest that the share price drop from 56c to 42c over the past few days post announcement was because people bought into the company not doing their research and expected a) the announcement to state the keys have been delivered and b) the scoping study to be delivered also... We need to remember that the market cap is a measly $35M at the moment and going by the potential of their coal/phosphate/gold/uranium projects this is significantly undervalued at the moment.

Good times ahead for Mantle IMHO.

Cheers
Kevi