rang company was told nothing has changed, page-6

Following I recieved 3rd hand, so I'm not sure if it has been amended in any way:

" Dear xxxxxx
I understand that you have made an enquiry of ACS about a comment to the effect that the ?Chinese negotiations have fallen through ? and have requested clarification. I am aware that such comment first appeared on Hot Copper last week and has subsequently been removed.

Obviously I cannot tell you anything that is not already disclosed to the market but I can report that the Chinese discussions are still continuing and that it would be quite wrong to say that they have fallen through. ACS is in discussions with several parties and will update the market soon as to where those discussions are at. We try to provide updates in the quarterlies and also mid quarter. It is true that the discussions have been taking place for some months now but you must remember that we lost Christmas and Chinese New Year which reduced things a quite a bit. Nothing happens quickly in China because in the larger companies there is a high number of management levels which have to be presented to separately and with the technical and legal due diligence that needed to be done this was always going to be an exercise that took some time.

I am pleased to say that ACS has considerable and genuine interest in the sale of its Magnetite Range from a range of Chinese parties and is still confident of achieving an outcome. Obviously there are no guarantees but even should a sale not be achieved for any reason, ACS remains in the fortunate position of having other options for the project including development or even just waiting whilst the mid west infrastructure develops (which should enhance the value of our project in the medium to longer term). Don?t forget that ACS only embarked on the potential sale route because of the interest expressed by the Chinese which we are doing our very best to test.

Hope this helps.

regards

Ian Hastings"


I continue to strongly believe. Good Luck.