open letter to mark

Hi Mark,

when I read about the trading halt I had hoped that you management guys
re-negotiated the unfavourable ECE deal but after the release I was disappointed
that you were just able to negotiate an 18% rise in the 'take over' price that
was so ridiculously low that I can't even laugh about it.

Just as a reminder; two years ago Thuthuka was willing to pay .55$/share
for a 25% stake in the Kanyika project. This means no control of the project
and even more important no control of the company.

In midst 2009 no one has ever heard about the high potential Machinga
REE project; 2009 we have been in the financial crises with little perspective
and very low commodity prices but an investor was willing to pay a fair price
for a 25% stake in our company building project. If you apply the much higher commodity
prices, the massive rise of sentiment and the fact the a 25% in a project is less
worth than a 51% stake in the company, that brings you into the drivers seat.
So a fair price just for the Kanyika project is somewhere near the 1$ mark per share
and I'm sure you know about that fact. If you add a fair surplus for Machinga and the
other partly explored and/or drilled projects, you end up at a valuation base in the
area of 1.25$-1.50$/share. The RCR research that is paid by GBE comes to a fair
value of 1.25$ per share at a .50$/share equity financing and with unfavourable A$/US$ exchange ratio and non adapted commodity prices.

Considering this facts it is unbelievable that you are trying to sell our company
to the Chinese at such a discount with .405$/share. You can't trust the Chinese and they will
probalby just shelve the Kanyika project and we won't participate in the development
at all. It is pretty easy to direc back the 48m $ back into Chinese treasuries.
We will have no longer control about our company and the Chinese could even
delist the shares or buy out the projects with a 51% stake. I can't understand
that you expose the shareholders - you are responsible for - to such a risk.
Although you have an 8% stake in GBE this is no argument at all because we
small shareholders are not able to negotiate 'golden-parachute' type deals.
Being honest I dislike the part of the recent interview published in the SMH
where you defend yourself by saying "I have 8 m shares by my own". Of course
you have but you only paid .0985$/share on average and you have received 3.21m
performance shares that are dependent on BFS and start of production of the
Kanyika project. I'm pretty sure that ECE would pay a reasonable amount
for such performance shares just for their self-motivation -:)-

My major problem with the deal is the total lack of information. ECE has not
committed themselves to a certain timeline to bring Kanyika into production.
They havn't provided any information about their specific intentions and their
strategy for GBE. Will they install a new CEO, who will run the company and
will GBE be further listed at the ASX. Will they keep the 48m A$ in the company
and will they provide further assistance and why are they not interested in a 50% stake
in the Kanyika project (asset deal) rather than GBE as a company (share deal).

I think that my concerns and lack of confidence is representative for most
shareholders in GBE and therefore you should address our point of view
and should start to behave like a CEO for all shareholders and to provide us
with accurate information and to explain the .405$ to us.

Cheers