It is looking good, they have bought for $500,000 something that...

It is looking good, they have bought for $500,000 something that originally cost about $9 mill.

Regards



PLANT AND EQUIPMENT REMAINING ATWINDIMURRA
ADDITIONALPLANT BOUGHT BACK AT AUCTION
The Company (“PMA”) announced on 9 August 2005 that theWindimurra mineral tenements and
remaining Windimurra plant, equipment, infrastructure and intellectual property had been
transferred back to the Company. The mine had been partly demolished in early 2004 by the
previous owner.
Plant Remaining at Windimurra
Whilst PMA has only been in possession of theWindimurra assets for a short time,we have carried
out a preliminary assessment of the approximate level of Windimurra assets that remain, andwhich
now belong to theCompany.
By comparison of the detailed asset depreciation schedule as at 30 June 2003 prepared by the
previous owner with a visual inspection of the plant at site, and discussion with former employees
the directors have determined that plant and equipment and infrastructure with an original cost in
excess of $50million remains at Windimurra and form part of the property of the Company.
Purchase at Auction
The Directors are also pleased to advise that PMA bid successfully at a recent auction of plant and
equipment removed fromWindimurra by the previous owner. The plant purchased by the Company,
at a cost of approximately $500,000, includes all major components of the Windimurra magnetic
beneficiation circuit including 12 Eriez rare earth High Intensity Magnetic Separators (WHIMS)
originally costing $506,000 each, and a Delkor vacuum belt filter which originally cost some $1.4
million. The original cost of all the equipment bought back totalled $9m, and is included in the table
below.
The categories of plant and infrastructure remaining are as follows:
Category Original Cost ($m)
Plant Infrastructure 3.5
CrushingArea .5
GrindingArea 1.0
BeneficiationArea 6.8
RoastingArea 26.1
LeachingArea 5.1
DesillicationArea .2
PrecipitationArea .5
Deammoniation/FusionArea 1.1
Plant Services Area 10.1
Borefields 2.4
Plant Electrical .4
Buildings .3
Workshop .1
Mobile Equipment .1
Village .3
Total $58.4
The condition of the remaining assets and utility in the rebuilt operation will be examined in detail
as part of the proposed re engineering / bankable feasibility study. The previous owner retains an
option to pay PMA a further $4m and to remove certain components of the kiln, principally the
drive, bearings, ring gear and live ring. This option expires on 21November 2005. The original cost
of the items under option is listed in the above depreciation schedule at $4.5m. The current cost of
replacing the items or of reinstalling them is not yet known.
Other Infrastructure
As well as the plant and equipment at Windimurra belonging to PMA, the Windimurra project is
still served by extensive infrastructure put in place by the WA State Government and its partners
including:
• 365km gas pipeline linking Windimurra directly to the Dampier to Bunbury Natural Gas
Pipeline
• 13MWgas fired power station
• Sealed roads to theWindimurra minesite
PMA has not yet negotiated terms for the use of these assets but is confident of doing so on
competitive terms.
Yours sincerely
PRECIOUS METALS AUSTRALIA LIMITED
RODERICKSMITH
ManagingDirector