research & resulting questions, page-13

Hi erichmj,

Thanks for your reply.

1. I also hope that the revenue from the Aust plant will be insignificant in the future. However it all depends on the total tpa we process. If we would reach 350,000 tpa per annum (globally) then a 35,000 tpa reductiong (60,0000 capacity - 25,000 from Alcoa and Sims) then it is a 10% reduction. Hopefully we are processing circa 1 million tpa (by the time this comes an issue) or some other high figure. Then the reduction in Aust will be insignificant (circa 1-3.5%).

2. I will have a look at the research report, I see no problem using DCF into perpetuity or a standard PE as long as "you" or "me" or whoever is running the numbers is content that the contracts with Aloca and Sims will be rolled over on a long term basis and not stop after 3yrs and 1yr respectively.

3. Yes the Miyabi Gold Project has been relinguished however my point was that MHM should remove this information from their website. The MHM website currently states "MHM has engaged international mining consultant SRK Consulting (UK) to conduct a pre-feasibility study into the project." This is now incorrect, the project has been scrapped and in my opinion is a negative spot (only minor) on the directors and company's ability. I see no reason why they should have chased this in May 2010 when it was clear as day that their future was in the Salt Slag processing.