situation at mine, page-3

Yes one would hope that a sense of fair play prevails here and that HNC is an aggrieved shareholder just like us and just as bitterly disappointed with the miserable performance of our management.

If you have any doubts as to how badly they have failed us in contrast to how they promised to protect our interests, have a look at their own “Policies and Charters” documents that were under the Corporate Governance section of the web site. They would have done well to have read them once or twice of the last couple of years and applied the stated principles they contain a little more diigently...

Particularly documents such as:
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Corporate – Governance_Shareholders communication March.pdf

Corporate - Governance_Risk_Management_March_07.pdf

Corporate - Governance_Continous Disclosure March.pdf
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It covers written policies and charters such as:

“to keep stakeholders informed on a timely basis of the material events or issues affecting Compass”

“overseeing the activities of Compass”

“monitoring and reviewing risk management systems”

“Professional due diligence and feasibility assessment prior to acquisition of interests and project decisions”.

“The Company believes that communicating with shareholders by electronic means,particularly through its web-site, is an efficient way of distributing information in a timely and convenient manner”.
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So yes we hope that a sense of Fair Play prevails and that the massive investment by all shareholders is respected and we can all work together to get this show back on the road and make Compass Resources the great Australian Company that it was always meant to be.

But as we said at the beginning of this we will “Hope for the Best, but plan for the Worst”.

And make no mistake about it we have done a significant amount of work already and will be well prepared for a fight if it comes t that.

But I digress.....

LC56 if we could assume those figures to be representative of what we are capable of then that would seem to be just such a Fair and Reasonable arrangement (DOCA) while the company re-establishes itself.

Can I just confirm the figures you are working with:

So the: OPEX (1/3 reduction of 60 mill) = 40 million

Is that 40 million total, split two ways under the JV. I.e.: 20 million (50%) to HNC and 20 million (50%) to shareholders and creditors.

So if Shareholders and creditors get a “dividend stream of 5 cents per share” / year,

that would be say, approx 150,000,000 (shares) x .05 = 7.5 million... ( that would be 20 million - 7.5 million = 12500000 million surplus).

This is where I get stuck.

How to you get 15 million?

Was it intended to be 7.5 million to shareholders and an additional payment of 7.5 million to creditors = 15 million

Leaving a Surplus = 5 million ???

Opinion only and written without prejudice.

"Perseverance is not a long race; it is many short races one after another".