question time

Hi guys,

I have asked the kind folk at HC to allow me access for tonight only to post on the PLV thread. After tonight I'm back to read only.

My read of the posts tonight shows there is an awful lot of confusion on what we announced, the Timeone relationship, payment of tranche 4 etc.. So I thought I would make the following statements then answer questions for a few hours. Please note my signature in that I have to be very careful in what I disclose. If I can't answer your question it's not that I don't want to or that I am being rude. I just can't.

Also I understand there is a lot of frustration regarding the share price and , in particular, our share price performance since the PFS.

I will try an answer what ever I can but if a few certain posters want to use thus opportunity to bag me or the company then I simply won't respond. Particularily non holders.

Ok, there is a lot of debate on why Timeone didn't put in the $17m for tranche 4. If you saw my previous announcements you would understand Timeone had a key investor that made promises but failed to deliver. This caused a lot of embarrasment to Timeone and a nightmare for me. No matter what you believe china credit is very difficult since Xmas.

We have been working very hard with Timeone over the past few weeks to replace this investor and to Timeones credit we had decent choices. We ended up selecting SS&T as the replacement. If you look at their website you will see the quality of the company.

SS&T are very keen on our projects. They are like minded with me in that they believe you go hard at near term cash flow to grow your business. This is where cockatoo comes in. This is our near term cash flow. Cash flow next year.

We approached SS&T about funding Cockatoo. It was very clear to me that funding Cockatoo with a low share price in a tough credit environment could only have meant a JV or massive dilution. Give me a free carried 50/50 JV anytime over massive dilution.

SS&T like the concept and we are now where we are.

I need to make it clear here to respond to a few very negative posts.:

my announcement yesterday said SS&T would fund Timeone with $70m and Timeone would use that funding for the Cockatoo earn in and to meet tranche 4. I said that included the $3m received yesterday. That clearly means SS&T provided the $3m right?

My announcement said conditional to this, conditional to that, if we conclude etc..... This is legally correct. Twiggy ran into problems saying he has an agreement when others said he has an agreement to agree. The law is clear. It's not an agreement till you have a legally binding document.

We have met with SS&T frequently both in Shanghai and Australia over the past few weeks and we negotiated a win win deal. In the limited time available (4 weeks) we have agreed to commercial terms. We need to finalise the binding term sheet to call it a binding agreement. Hence the very legal tone of my announcement.

Think of this then. If SS&T were not fully commuted in closing the deal why did they put in $3m at 35.5 cents? Kinda like what 123enen was asking you Chubitto.

Why would they have chucked in $3m in a deal that they weren't really going to fund just to lose it?

Also a couple of posters have harped on about why Timeone didn't put in the full $17m. Yes it was due earlier this year but my comments above has explained the issues. The commercial reality was a key investor pulled out. Not good for anyone but they are the commercial realities.

Given we wanted to fund the Cockatoo acqisition without massive dilution and given the clear way forward was a free carried 50/50 JV on an asset which has many many synergies with Irvine ie low grade ore, infrastructure etc and we have a strategic partner in Timeone, it made a lot if sense to do the JV with Timeone with funding provided by SS&T.

Under the Corps Act we cannot sell any part of an asset to a shareholder without shareholder approval. Given tranche 4 is part of the funding supplied by Timeone by SS$T and is part of the new entire funding deal we need shareholder approval for all shares above 19.99%.

Timeone CANNOT complete tranche 4 without Pluton shareholder approval.

I would love to have all of tranche 4 now, but I would much prefer it after shareholders also approve selling 50% of an asset we don't even own yet for a free carry and the opportunity to be a producer next year AND to the partners that understand the synergies between Cockatoo and Irvine that will benefit both of us when we send our preconcentrate to their plant at Rizhao.

Do you think SS&T invested $3m to see all this not happen?

Sorry for spelling errors, very hard to post on iPhone.

Enough from me. Any questions?

Cheers Tiny