quarterly ann, page-25

Quite happy with the quarterly really. Whilst the delay with the filter is not what I expected, I do not see the filter as the most important issue that needs to be resolved.

In order of importance (my opinion):

1. Reach agreement with Frank Rogers and Co on ownership of technology


2. Renegotiate contract with Alcoa for profitable operations at Moolap


3. Determine best course of action for AL80


4. install new filter and increase throughput

In my view the last two points are easily achievable (if we have to we can give away the AL80, it was never going to be a major profit contributor anyway...) It is the first two points that are critical and it seems we are making good progress on these.

Delaying the installation of the filter is simply good capital management and also strengthens our negotiation positions with both FR and Alcoa.

Patience required, but I expect to see us moving ahead full steam within the next couple of months.

Cheers,

svdm