ppc revisited, page-3

I must say I disagree with a lot of your conclusions.

For one, I can't see how the agreement will allow them to rapidly accelerate the Tiger drilling programme when Tiger is not part of the agreement. The company has clarified this stating:

"For clarity Pan Pacific cannot earn an interest in the Brightlands project other then the Chumvale Breccia prospect which represents less than 3% of the total Brightlands project area."

This is a positive in my view as I'm sure nobody wants the prospect of being diluted to a 10 per cent holding in Tiger if Cu is hit, but it means that the money will not be spent on Tiger.

They could perhaps spend more money on Tiger if they had previously set aside funds for the Isa tenements, but management has stated their focus is on Brightlands.

I agree that the agreement will reduce the company's financial risk, but again this is primarily with regard to the Isa tenements, which is not their main focus.

Also, a new source of funds for rock sampling and new drill rigs for T2 and T4 will also not be available under this agreement. The funds will be allocated for:

1. Talawanta
2. Grassy Bore
3. Mt Margaret
4. Proterozoic basement in Bungalien, Horse Creek and Malbon2 ; and
5. The Chumvale Breccia prospect.

However, I think if the agreement is signed it is definitely a positive as it shows that management is capable of finalising deals, which will also provide confidence that a future deal wrt the phosphate tenements will be forthcoming.

Cheers
SBC