re: ann: metallurgical breakthrough

Unfortunately, over the years, our company's management have been taking us for a ride by the numerous announcements of "Metallurgical Breakthroughs".

Although there are a number of other similar announcements released to the ASX, I extracted one announcement of a "breakthrough" referring to the Young project dating back to 10/12/2001.

I am sure that the recent JRV announcement is another promise, which will not be honoured by Mr.Pursell as in the past. What has happened to the Young Project!

The 2001 JRV announcement reads as follows:

Report on The Technology Store Inc (TTS In.) Process
Document date: Mon 10 Dec 2001
Published: Mon 10 Dec 2001 15:13:58
Document No: 131358
Document part: A
Market Flag: Y
Classification: Progress Report
JERVOIS MINING NL 2001-12-10 ASX-SIGNAL-G

HOMEX - Adelaide

+++++++++++++++++++++++++
The Company's Quarterly Report to 30th September 2001 referred to the
new technology for nickel and cobalt recovery from laterites which
the Company is working on with The Technology Store Inc (TTS Inc)
in Reno, Nevada.

An independent technical due diligence review on the TTS Inc process
dated 30 November 2001 had been completed by AMEC E & C Services
Limited of Vancouver BC for reporting purposes to the CNDX. The
report is favourable and drew the following conclusions:-

"The technology was developed over 7 years of testing by BHP Research
and appears to have been well demonstrated at the bench and pilot
scale. The technology has not been developed to the full feasibility
level yet, but there are good indications that technical feasibility
is achievable. The planned 200 tpy Ni demonstration plant will add
another scale stage that will further minimize the technical risk as
the project moves to full scale commercialization. Independent
verification would be required as part of a "bankable" feasibility
study.

Like all process technologies focused on natural materials, technical
and economic feasibility has to be proven by new testing and
engineering studies for each resource being evaluated. This
technology has the potential to process ores which were previously
uneconomic. Amenability studies have been carried out to evaluate a
number of potential lateritic nickel resources using this technology
with a high degree of success.

The TTS leach process appears to be relatively robust, and offers a
number of potential "back end" routes for producing commercial nickel
product. The proposed ion exchange route has been shown to be
technically viable based on current experience with a nearly identical
resin. Obviously, the commercial viability of the process must be
demonstrated through a full technical and economic feasibility study,
but it appears that the process, applied to the right resource, could
produce nickel at significantly lower capital and operating costs
than current routes.

There is a good possibility that further development of the TTS
technology will yield a commercial lateritic nickel process."

The Board believes this totally independent review to be a
significant endorsement of the Company's approach to the treatment of
nickel/cobalt laterites.

D C Pursell