status, page-32

Can update the Iron Ore Forecast to include the Rincon Salar Forecast:

Slide 27 of ADY's September Presentation gives an estimated forecast for Rincon Salar from June 2009:

Production per annum:

10,000 tonnes of Lithium Carbonate;
3,000 Tonnes of Lithium Chloride;
4,000 tonnes of Lithium Hydroxide;
70,000 tonnes of Potassium Chloride (Potash);

Annual Revenue :

17,000 tonnes Lithium US$105M
70,000 tonnes Potash US$20.3M

Total Revenue US$125.3M

Operating Costs US$35M

=> Operating Profit EBITDA = US$90.3M

(Note: No interest expense, Depreciation or Tax Expense in the above calculated figure.)

Summary

Iron Ore:

Price of Fines (FOB)....$51.78.....$57.22.....$68.67

ADY's Share 60%(US$).....108.2M....140.8M.....209.5M

Rincon Salar..............90.3M.....90.3M......90.3M

Total US$................198.5M....231.1M......299.8M

No interest expense, Depreciation or Tax Expense in the above calculated figure

The above figure compares with ADY's current market capitalisation of about A$280M (ADY's closing price today was 0.28)

Regards

SP