potential of caz, page-2

Hi pelsaert. I somewhat agree with your very skeletal assumptions but more will come when the DFS is released with more met. work. One can't underline enough how significant it is for CAZ to be so close to existing and accessible infrastructure including road, rail, port, power and townships. We could easily be taken out. Please also be aware that our Hamersley Project is located in close proximity to the planned FMG Solomon rail
corridor...

It's all in the PFS:

* pre-feasibility study confirms technical and economic
viability of the Parker Range Iron Ore Project in the Yilgarn region;

* expected NPV of $A216m with IRR 78pc for contract operations option;

* revenue based on independent price forecasting and not spot iron ore prices;

* upfront capital costs of $78m plus $26m deferred until year 3;

* estimated operating costs of $45/t of shipped product;

* global resource 40.4 Mt at 53.8pc Fe (59.1pc CaFe), 90pc
Indicated category;

* total production of 22.0 Mt target fines product grading
56.6pc Fe (62.2pc CaFe);

* preferred option produces 4 Mtpa transported by road-rail to Port of Kwinana for initial 5.5 years' mine life;

* metallurgical bridging program to start with early DFS
activities;

* first ore on ship (FOOS) planned for Q3 2011; and

* strategic partner discussions under way.