placement

Hi all,

Well this was a surprise! What a tight ship PJ runs!

My initial thought was, what the hell's going on, we only just had our AGM & PJ stated that equity raising wouldn't be done until after 60% debt had been sourced (expected mid 2011).

However after reading through the announcement in full, it all makes sense. This funding is for the rail link which had to be brought forward as a result of the recent environ consultation (which was previously announced).

PJ also recently presented to Citigroup. I didn't take a great deal of notice of this preso as I thought it was just to generate further exposure of RES for when we do a raising next year. But it all makes sense now!

I think we'll experience some short term pain, but the end result will be rewarding.

I recommend all try & pick up some at 50c even if it's not your entire allocation, as we won't be back at these levels again. My prediction is the next raising (mid 2011) will be around $1 as previously stated as we will be even further developed by this stage:

- 2ND OR EVEN 3RD OFFTAKE SECURED
- MINING RIGHT APPROVED
- FINANCING (60% DEBT) SOURCED
- RAIL INFRASTRUCTURE UNDERWAY (SECURED LAND & ACCESS)

Overall, was certainly a surprise, however I genuinely think it's in shareholders best interests that this placement is done now (as we wouldn't be able to develop the mine otherwise).

Others thoughts welcome!