response from john re agp note

Hey All

I'm putting this under a new title so it's clearly available to everyone. I made a post earlier today correcting a false assumption I had made from a Mundo release regarding the AGP convertible note.

As Quicksilva points out he has done in the past,I should have asked John in my email if it was ok to pass on, but now that I'm home from work and have reread his reply he clearly states that it's information that he gave out at the briefing - so here's his reply to my email in full...

Hi XXXXXX,

I am always happy to respond to queries and I happen to be at my computer answering emails to Brazil so may as well attend to this now.

I spoke at the briefing in Perth tonight and mentioned that I am unable due to some confidentiality issues to be specific about the convertible note. What I did say and can say is that the decision not to proceed was the decision of the board of Mundo Minerals and we advised Anglo Pacific that we could not proceed as in our opinion some of the commercial terms in the final agreements were in our opinion not necessarily in the best interests of all shareholders now or in the longer term and therefore as directors we could not recommend it to shareholders or in our view proceed. Other than this it is difficult for me to answer in more detail and we do respect them as a shareholder and continue to treat them as we do all shareholders and expect that they will continue to be a supportive shareholder. It is just that we could not agree to final commercial terms. I am sorry that this is a little verbose and not as direct as you may hope but I am sure you will respect my position as a director and those responsibilities.

We expect that the costs will be more economic as we bring Crista into production. As of now all is proceeding according to schedule and we continue to expect this to commence about July/August. We appointed a project manager two weeks ago to drive this forward.

I hope this answers your questions.

Out of interest, most shareholders I spoke to after the briefing seemed enthusiastic about the future and agreed we actually have achieved a lot but that is I guess the response I received and you may well be better to get a view from someone who is not a director as I guess I have a conflict of interest having presented.

Best wishes

John Langford
Mundo Minerals Limited
45 Ventnor Av
West Perth WA 6005
Office: 61 (0)8 94298889
Fax: 61 (0)8 94298800
Mobile: 61 (0)418 935552
email: [email protected]