questions re resource value, page-15

Denny and others,

Those figures are really not much use because the cut of point for DSO fe is around 55%

I think some of you are confusing magnetite cut of grades. Which can go as low as 25%Fe3o4. This needs processing to bring it up to 60% + Fe.

My take on it is as follows.

* Based on 40% share via CFR's interest in Elephant Gold.

* An IGV of 10% of tonnage value at.

* A price of $100 per tonne:

NOT COUNTING ANY OTHER CFR PROJECT:

10Mt = 2.5 cents - So on that one let's say that the current price would be cheap.

17Mt = 4 cents

25Mt = 6 cents

35mt = 8.5 cents

Remember - there may be nothing there. There may be 10,20,40,70, ??? Mt. We wait to see.

Cheers