sick, page-21

Dapper,

We must presume that AD is aware of this and, if not, it's the board's responsibility to familiarize themselves with the TSX before any listing.

But look, before accusing the board of anything devious or naive, let's be clear that, in certain circumstances, a TSX listing could be a very valuable and natural step to take. Companies should always be open-minded about diversifying funding sources. It's just that I don't think that step needs to be taken any time soon. A more natural evolution of the story for me would be to secure off-take agreements, and then try to flesh the project out step by step. When one piece of the jigsaw falls into place, it's easier to get other bits to fit. What's the point in raising cash/added shareholder dilution if you cannot attract phosphate users to take inventory off your hands? From what I can see, MAK.AX has sufficient cash to last it for quite some time; all efforts should be devoted to winning an offtake agreement as this would be an important first step in proving that the project is economic. And perhaps in that kind of context, a secondary listing elsewhere - in time - to help finance project development would be a sensible option.

My point therefore was that it just seems illogical to be considering a secondary listing at this moment in time. And maybe AD is aware of this and talks about a listing in a more general context.

I have no doubt that there are serious investment funds in Canada/USA who would support a project of this nature if the economics of the project were validated. The essential difference between PhosCan and Arianne in my previous post (especially market cap) was that Phoscan managed to raise a huge amount of cash before markets disaster struck in 2008; by the time Arianne was preparing to raise, conditions had deteriorated to the point that it was no longer able. And in the general malaise in the pricing of rock phosphate since, both companies, for different reasons, have largely been forgotten by the market. If sentiment were to improve, then again, a secondary listing on the TSX may make more sense. It just seems a distraction to talk about it right at this moment in time.

Does that explain things better?

G