nr - pre open, page-44

Retrac I am certain that the sector has taken a bigger hit overall.

Unpredictable supply, lack of investor understanding, outdated demand forecasts, majority of supply and demand data out of China (who knows how accurate they really are) and new projects encountering continuing delays does not help.

It is not yet a proven concept outside of China and a lot of fear and uncertainty prevails in the industry whilst a lot of the commentary remains biased (unless these analysts like Lifton are on your retainer they're not of much use). Truth is they don't know the demand or supply situation much better than you or I do and this is coming from the mouth of a leading RE analyst working for JP Morgan in Asia.

If this was a copper asset or Iron Ore Asset we would be well north of where we are and pretty much one of the biggest and best deposits in the world. I recall a poster putting Ngualla's value as a gold equivalent with relevant grades which told the story very well.

The other minerals we have are very important and must not be overlooked. Niobium was a hot sector last year with plenty of activity and there are early signs of a great Niobium deposit at Ngualla.

Obviously the poor state of the market does not help though but I think this is secondary to the above issue.