Road Show, page-6

Thanks Neptune,

Did you say $22-23 / ton FOB!!!! I nearly fell off my chair! No wonder Wayne is calling this a game changer.

So this is how I now see the Tawana story unfolding:

1) Drill the DSO targets to firm up the reserve after the wet.
2) All going to plan dig and ship the DSO with minimal capex all the while creating the pit for the itabirite.
3) Use the cash-flow from the DSO operation to fund the expansion into mining of the itabirite and working capital.
4) Dig and process the high grade itabarite (now exposed from the overlying DSO) which will fetch us a $10-12 premium to the standard 62%Fe ore. It may cost a bit more to mine but the premium sale price would offset this. I would be interested to know what the itabirite would cost to mine with some new inputs such as fuel in Africa now being half the price compared to a year or two ago, this would surely be a major cost of production which is now more favourable!?
5) Sell this high grade ore to Europe or UAE (I think Deme mentioned WR had been sniffing around the UAE) who have the infrastructure to process high grade ore.
6) Build the MC and sail off into the sunset . Sounds easy right!

Let's say we sure up 500Mt of ore in total (DSO+itabirite), this is a dream project despite the obvious macro factors.

Wow Wow.

Plenty of challenges ahead but this multi phase project is very exciting and requires minimal capex which is great for shareholders.

Please comment or correct any of my assumptions as I am looking through the recent preso as well as Neptunes comments to try and fully understand the impact of the new DSO and itabirite combination.

DYOR IMO

Mafew.