questions 1st june 2012, page-4

Hi Tony,

Thanks again for making time to answer questions.

I'm a little confused by section 4.7 of the Ravensgate report (p31). They state the overall mining costs will be around $16/t moved and that this is probably an overestimate. Section 4.10 then states that the cost is likely to be nearer to $3.50-$5 per tonne moved. I gather this is just the cost of moving the waste/overburden? This isn't the cost of mining the ore right?

In section 4.1 of the Ravensgate report, they state: "At present the financial model presented by Pluton?BDO illustrates that the project has a positive NPV of $11.9M"

Given that the earnings from Cockatoo are fairly immediate (so there is faily little discounting in the calculation), I was surprised to see such a low NPV. Can you comment on the low numbers we are seeing? Are these just very conservative numbers (i.e. useing $16/t rather than $5/t etc.)? I had thought that Cockatoo would allow PLV to get some income to help advance Cockatoo and Irvine operations.

Cheers,

StatsMan