MYL Site Visit, page-39

Thanks for the time to put together that report Kalenn (haven't seen much of you since the AVB takeover). Your report pretty much mirrors what I had expected to be the case and is obviously the same reasoning that brought many investors and the Perilya partnership into MYL.

I strongly agree with you that at the moment all the BJV partners make sense in that they each bring their own strengths and expertise to the JV that really help ameriorate some of the sovereign risk / licence to operate perceptions that could be raised.

The high grade and massive tonnage and potential of the orebodies really do mean that this is a Tier 1 Zinc/Lead and Copper asset that will have low costs and a long mine life, and would survive most economic shocks or price cycles.

My only concern is that although the Australian ASX listed MYL brings its own expertise and governence  I was wondering if you would be able to expand on who you think would be the likely "predators" or interested parties in the future who would be looking at the asset, I have had a think about this.

Although Perilya has its own Chinese connections and ownership, it essentially is managed by Australians as a mid sized base metal miner that has been delisted from the ASX, but essetially operates as a global base metals operator (as evidenced by their operating assets in Australia and the Dominican Republic). Perilya are the best JV partner for this project as they bring in indirect Chinese interest without being so obvious as to start to raise some local sensitivities or potential problems that Chinese investment has brought in in other parts of the world. Perilyas interest in this this may curb some of the more, shall we say, mercantile interference in resource rich nations that we see in other places i.e. the DRC or Mongolia for instance

Off the top of my head I would suggest that the big guys whom might really be interested in the Baldwin Project would be a limited number. Glencore springs immediately to mind, Nyrstar have had some unhappy experiences in mining and seem to want to shrink to being smelters, Korea Zinc are a maybe although they may be very hesitant to play and invest in somewhere that has the perception of being China's back yard, Shaanxi Nonferrous Metals and or MMG are another possibility along with maybe Hindustan Zinc? Ivanhoe (or Robert Freidland) can never be written off as a wild card in the pack either, despite their previous experience in Burma.

I agree with the comments that if the BJV operates as a win-win JV and the Burmese Government is left unmolested by foreign and local interference then the project will eventually work.