sam byrne from patts, page-3

Hi Mozart, to be completely honest I didnt ask about the expected time of upgrade. Im someone who tends not to ask questions I dont think someone could answer accurately. Thats an issue for the company and I dont think Sam would know till late July. In saying that I should have asked. Will let you know if I speak again.

Impurities seemed of little concern. I now believe the impurity issue will be a costing issue. Although the FE is proven to be upgradable through a cheap and simple beneficiating process, when push came to shove he couldnt deny further costs may need to be incurred to reduce impurity levels. IMO this would come down to a balance between costs and profits. He said this would be part of the PFS. I believe we will have to wait over 6 months for these specific fundementals. IMO however the successful placement was not due to an indicated 47 MT DSO but the whole detrital resource. WR believes he has 550MT of saleable product and so do I.

I am completely confident with current IO prices BRMs product is still highly profitable and completely saleable in the short term. What the PFS will tell us is whether a mine life of 20+ years is viable when IO prices ease.

I personally dont see the sp heading north of $3.50 until either a positive rail announcement or costings of beneficiation and impurity levels are released as part of the PFS next year.

ant1