Q & A's have been removed. I have them saved.Shakespear, I have...

Q & A's have been removed. I have them saved.

Shakespear, I have the one you are referring to. Have been collecting this stuff for a couple of years.

In the meantime remember this old chestnut, not too long ago.

As advised many other times, the share price just DOES NOT reflect the value of the company: not the
current, not the potential.
If the latest two announcements are read as they are meant to be read, the following comes out of
them:

SHARE PRICE WEAKNESS.
Shareholders are viewing the Shougang contract like a swim/sink issue and it is not. Should the deal with
Shougang fall through,
- there are other 2 steel mills interested in the offer
- Admiralty / Minera Santa Barbara could take the option of not signing any long term contract and take
advantage of the spot market.
- ADY/MSB’s assets are almost debt free. A mortgage could be put in place.
- Rights issue.
- Wyndham Explorations SA, our JV partner in MSB, owns ADY over US$18m that are due by February
2009. If they pay, ADY/MSB will have those funds available for expansion.
If they don’t, ADY will take possession of their assets in MSB as part of the Fixed and Floating Charge
Contract that was signed in 2005.
If Admiralty owned 100% of MSB, it could sell part of the stake to a steel mill to raise working capital.
This last option can also be done now.
SANTA BARBARA
- SHIPPING. 2 shipments for a total of 60,000 have been shipped in August so far and there is another
40,000 tonnes plus shipment planned for the end of the month or the beginning of September. From the
cash point of view, the Cape Nelson, for WISCO, has been roughly a net loss of 1m. However the
Abkhazia, for Shougang, is bringing in over 5m and another spot sale is programmed for early
September. The tonnage of this shipment is unknown yet but if it is over 45,000 tonnes, we will be
fetching about 9m.
Additionally, the technical specification on the contracts has been met and even a bonus has been
achieved, which means that production, although lower than desired, continues to meet and exceed the
quality standards.
- WISCO. Wisco is understanding of the situation in which Admiralty has been placed by Minera Santa Fe
not honouring its part of the contract and Wisco is not only willing to explore options to cancel the
current contract (in which Admiralty incurs losses in each shipment) but Wisco is also willing to join
Minera Santa Barbara in its legal actions against Minera Santa Fe and WISCO is even exploring the
possibility of a JV to explore one of the mines that Santa Barbara owns.

- LONG TERM CONTRACTS. Negotiations with Shougang continue for the 50% of the production, a
Memorandum of Understanding has been signed with WISCO for a long term contract for the remaining
50% of the production.

- FUNDING. Work continues on the Stand-by Letter of Credit (SBLC) and on the 200m bond with ML.
Current debt (US$12m to Ya Global Investments, A$10.8 to Hawkswood Investments and A$1.9m to
institutional investors) would be paid off via the funds received from the SBLC or from other alternative
financing facilities that are being explored.
Besides that, Santa Barbara can be a very profitable business and overcome its main issues with JUST
US$40m, which may sound like a lot but it is not in comparison to some other iron ore projects.

- Besalco Maquinarias SA, the mining subcontractor, is accountable for the low production and the
Company is taking legal actions against them.
- The lack of equipment (such as crushers able to crush material bigger than 2.5 inches) is caused by the
lack of funds.

Once these two issues are resolved (and they will once the 40m from Shougang or from elsewhere come
through), the business will be profitable, even using the Caldera Port only as we will be able to produce
in excess of 90,000 and do 2 shipments per month during 10 months, which is a total of $US6.3m per
month and US$63m per annum at $70 per tonne FOB –

I have picked a cheap price -.
If we add further funding, joint ventures and more shipping capacity coming from the current
negotiations, we have the potential to become one of the major producers of iron ore in Chile.
The above shows that Santa Barbara will be self sufficient as soon as the operations of the mine and the
plant are run in house and some further equipment is added to the existing plant.

- FUTURE. Removal of Besalco so production is increased and compensation for low productivity is
obtained. Possible joint ventures with WISCO, Shougang and Shandong. Should this take place, the
finance requirements of Admiralty will be much lower, which is very helpful in the current market.

RINCON
- We are producing lithium carbonate 99.3% purity after a 100-120 days process when our competitors
have been in the business for many more years than we have and are producing lithium carbonate 96-
97% purity and after a 8-9 months process.
- We are producing 10,000 tonnes of sulphate of potash every two weeks from Rio Grande.
- Equipment for Rincon and plant for Rio Grande has been ordered and we are waiting for delivery.
- The tender process continues and progresses satisfactorily.
- The demerger will be voted for once the remaining tasks (which are minimal) are finalized and we have
full approval from the ATO, ASIC and the ASX.

- FUTURE: With the appropriate funding, which part of it will come from the offtake agreement in the
tender, RLL is poised for a great start.

Regards,
Phil Thomas