process gday, page-14

This is how I see TZN in 2 years (early 2010)

1. ANGAS deposit drilled out and reserve doubled to 4m plus. Plant operating well in excess of stated capacity and maybe decision taken to double its capacity. High grade satelite deposits discovered within trucking distance of Angas plant.

2. TALA HAMZA- reserve of 50m plus @ about 10% combined Lead/Zinc plus usefull Silver credits- high grade core of around 20m @ 15% combined Lead/Zinc. Initial drilling has proved potential for other large deposits within the tenements. Bankable feasibility study shows a very robust project and decision to mine taken. Algerian government dilutes to 15%, possibly to zero ( we should be all pi**ed for a week if this happens).

3. MENNINNIE- Still waiting for ZFX to release an initial resource figure (only joking). Still drilling to prove up a number of medium size deposits ( possibly 100m plus in total)

Shareholder dilution- very minimal in my view- Tala Hamza is so favourably situated that funding its development won't be an issue- European refineries will be falling over themselves to assist with funding in exchange for off-take agreements.

Share price then- buggered if I know, but $10 wouldn't be unreasonable.

WHAT CAN GO WRONG- Plenty

Algerian government could nationalise all industry (very unlikely)

World recession caused by American greed, resulting in the collapse of base metal prices- possible.

Well ,thats how I see it- the timing may be out somewhat.

I'd be interested in others views- so get to it.

cheers