I feel that this would be far better coming from the company...

I feel that this would be far better coming from the company rather than me, but despite pressure from me, the company feels you all ought to be made to wait until mid Sept when the Half Yearly report comes out to understand what happened to nearly $10m of our money. Personally I don?t think treating shareholders like mushrooms is the way to go, so I will do the best I can to explain what I believe happened. Apologies if I get any of this wrong, I have spent over 2 weeks digging for this information and it has been like getting blood from a stone.

The problem: The Quarter 1 report highlighted that current assets, in the form of Cash and Debtors, stood at $22.4m at 31 Mar. The Q2 report highlighted that these same current assets stood at $12.7m at 30 Jun. ie a difference of $9.7m in just 3 months.

I believe that the Q1 report, by selectively reporting these figures, gave an overly rosy view of the situation and therefore that by reporting the same figures in Q2, it now paints an overly black view of the situation.

Page 55 of the Annual Report states that at 31 Dec there were trade payables and accrued expenses in excess of $13m. I have been informed that approx $5m of the expenditure reported in the Q2 report was bills from earlier quarters. This is good news in that it means there was not a massive overspend in Quarter 2, but bad news in that there would appear still to be a lot of outstanding bills to clear ? we will need to wait for the half yearly report to see the full details. The other bit of good news is that the debtors figure reported in the Q2 report was simply the debtors at the start of the Quarter minus the money received in back payments. In accordance with the off-take agreement, Jinchuan only paid 90% of the full value of the concentrate they received in the quarter. The other 10%, ie about $1.2m should have been added to debtors. Thus, taking off the capital payment of $1.1m for a new truck (expensive truck!) which was apparently budgeted for, a more representative figure for the operating loss in the Q2 is $2.5m. Not great, but not as bad as we had feared. Why the company does not think this is worth clarifying to the market is beyond me, but Investor Relations is now being run at our expense by FD, who incredibly are:

FT/MERGERMARKET ASIA PACIFIC PUBLIC RELATIONS FIRM OF THE YEAR SINCE 2008

Why was Q2 production so poor? In terms of quantities of ore mined, various strikes (widely reported at the time in the local media, but not reported to the market! Principally due to the Jinchuan management promising pay rises then reneging on them) and the subsidence (which was reported as having minimal material impact on the quarter due to stock piles! Caused, we believe, by taking out too many pillars to get more ore!) combined to cause the significant shortfall. The key question that remains unanswered is why have ore grades gone backwards during the quarter? ? clearly another failure against continuous disclosure regulations for that to have come as a complete shock, having had a KPI of 1% minimum for the rest of mine life adopted at the AGM at the end of May. However, having spent 4 weeks unearthing all the skeletons in Perth, the review team, supported by Mining Plus, are finally in Zambia to find out. Doubtless we will continue to be treated like mushrooms so don?t hold your breath for an early answer on that one. It is of course only the key issue that will impact of profitability of the mine going forward. Albidon Action has made clear to the review that it is essential that all employees at the mine are competent, efficient and loyal to Albidon (not Jinchuan). This is our only producing asset that is being mismanaged and destroyed!

The review remains our best chance of getting things changed and Albidon Action continues to constructively support it.