spp extended to 7 feb, page-15

Mattw,

To my understanding we are in phase one of the project which consists in gaining an estimate of the mineral resources that are out there.

If as expected things turn out to be good then phase two will come with the production of a bankable feasibility study, that is, with the elaboration of the plan that you are calling for in the form of a report including acceptable estimates of the ore reserves, pilot studies, description of the processing and waste disposal methods, the transportation of the iron ore to a point where it can be shipped overseas, environmental risks, a list and time-line for issuance of all necessary permits and, of course, an economic evaluation of the capital requirements, operating costs and expected profits.

After this, hopefully, it will come phase 3 or the ordering of all equipment, the construction of the processing plant, etc.

As the project progresses, obviously that its value increases making a take-over more expensive and prone to interference from the FRB (Foreign Review Board) and for sure that NMCD understands this.