quarterly, page-2

NNZ,

to my understanding a lot of the recent selling is associated with margin calls (from what I hear) and probably some of the Top20 holder sold a bit may be in anticipation of cheaper buy in.

Th Australian share market is amongst the weakest at the moment and Aussies starting to realize that even Australia is not immune to the hypo-crises and so people cash in former gains. If you have a look into the order books of most resource stocks you see a huge overhang at the sell-side with only a few stink-bid buyers lined up.

Will take a while IMO until the Aussies have overcome the shockwaves of the last trading weeks with I think a ratio of 16:4 red to green trading days in 2008. non-gold/silver resource stocks are the clear underperformer at the moment and the marke sentiment is really grounded (look yeserday from +2% down to 2+ = -4% intraday on 0.4% fall of the US-futures).

As far as ARU is concernd I would have expected the pilot plant to commence test production earlier and I hope that we won't get another 6-9 months delays on the PP-stage that will postpone start of prodution further ahead. Drill results also are just so slowly and the other projects virtually make no progress with no news in regard of Mt.Porter/Frances Creek gold properties, nothing new about Jervois etc.

Bottom line is that it wil take some more weeks/months until confidence is restored in the Aussie stock market in general and specifically into ARU.

Lenni