strategic investment 2012, page-2

Hi Aksier,
I understand what you mean" I estimate that stage 1 of the Terranova project will be worth at least 50% more than the current share price on a DCF basis"

currently Hard coking coal is priced at USD$300/t
NAE listed overall cost is $100/t

So if NAE can achieve this $200/t margin, to produce 360kt per year=360000*200/t = $72million net profit before tax.

However the market give Nil value for this prediction.

I believe the key SP performance should be triggered by the "Conceptual Exploration Target of 30 – 58Mt of Hard Coking Coal"

If NAE can really confirmed 50MT hard coking coal in place, it should be worth at least 10 baggers more.

The problem is I saw NOTHING the NAE board did for:"JORC Resource definition "

No drilling plan yet, no development program yet.

You mentioned :Itochu acquired a 20% interest in Drummond’s
Colombian coal mining operations (2Billion Tonne)for U$1.53 billion.

Drummond’s Colombian steam coal meets worldwide sulfur regulations and is also very low in NOx emissions, which is highly desirable to utility plants required to lower these emissions. In addition, Drummond affiliates market Colombian steam coal internationally to over 15 countries.

Is NAE's coal quality as smae as Drummond’s? Why not Itochu offer NAE $50 million to secure another 1 BT coal resource?

Why NAE board did nothing for its thermal coal :"JORC Resource definition "?

thanks