red herring, page-2

Hi Pepin

Let’s work this through, reverse maths

Say we raise $5mil SPP, that should be ample

Then, say we rasie at 5c, fair enough discount (note ‘fair’ is clearly a very subjective word)

Therefore; 5,000,000 / .05 = 100,000,000 shares

100,000,000 / 3,500 shareholders on register (approx, refer page 56 of fin report) = 28,000 share per shareholder offered in SPP

28,500 x 0.05c = $1,425 full subscription

At 5c, and $1,425, you make 60% at 8c offer

I think there is more incentive for the little guys to take it up than not, leaving Zijin severely diluted and no chance of 75%

Look forward to your feedback