the future, page-2

Hi AnniesLane ---

From: Annual Report 27/09/07:

“A new exciting possibility has developed at Falcon’s Saxby Ni/Cu project in the Mt. Isa inlier, in Northern Queensland, where Anglo American Exploration (Australia) Pty Ltd under our joint venture agreement has the right to earn 70% equity by expenditure of AUD$7M over 6 years.

Whilst the last deep drilling programme beneath the known Ni/Cu/PGE mineralisation at Olympia failed to detect a ‘world class’ size mineralised system, results to date remain highly encouraging as they point to the potential for a significant body of mineralisation open to extension down plunge, and the continuation of the prospective unit at depth.

** Falcon Minerals is currently reviewing possible options for the project with joint venture partner, BHP Billiton.”



In relation to “reviewing possible options”

I spoke to Kerry Harmanis at the Resource Rising Star conference on the Gold Coast last week.
He said he had a very good relationship with the BHP personnel he dealt with and was confident a good outcome could be reached --- I felt from what he said that BHP has great respect for JBM’s (and so FCN’s) exploration team.

I think the fact they are on good terms is very important --- equally so for both JBM and FCN.

He also seemed genuinely excited about the potential of Saxby – and Collurabbie

I was very tempted to buy more FCN --- but resisted after giving it some thought --- for no other reason than to keep my holdings diversified.