update from alara

I have just had a conversation with Phil and there is nothing more really to add about the status quo that Mo has not already outlined in his updates.

-Awaiting decision from Manajem. Alara are doing / have done everything they can to bring this deal home. Overall Phil is very positive this will happen but it is now a waiting game so no time frame given. Manajem are running out of ?avenues for delaying any decision to sign off so we just need to be patient. We will see a TH when it happens.
- As Mo has mentioned previously - current selling activity is a long holding fund selling due to their own internal governance and policies etc. Phil certainly feels any frustration SH are experiencing but with this deal done and other milestones achieved....the SP should start to go north in solid increments.
- Oman project figures getting bigger and better by the week. A surprising dark horse.
- Cash position is robust.(Remember we banked millions in tax credits recently and with this deal closed we can then lodge SIDF application for a truckload of low interest finance to develop the mine )
- Alara management quality is excellent as they have picked up some executives during the resources downturn that they could never have afforded two years ago.
- Overall..Phil believes Saudi is a stunning greenfield,early mover mining environment with govt support, tax breaks, huge govt funding available, excellent infrastructure and....resources !. He was very positive about Alara being there.

Phil returned my call promptly and I found him to be extremely open and forthright with his commentary.I received a solid overview without any bamboozling or heavy tech talk. I urge any shareholders who want updates on their company to call him . Phil said he actually enjoys talking to the shareholders personally but does not get as many opportunities as he would like.

So for me....I am just going to put my faith in the company and wait on what will soon hopefully be a really nice announcement that will change everything. It will take us one step much closer to the end game - production and with production will come a monstrous change in all our fortunes. This selling is a bummer for sure and it certainly puts my own holding well in the red but IMO I am not sure they will push it too much lower. Fund Managers are not charities. They do not give stuff away and at these levels they are taking profits. As long as buyers are stepping up to the plate and taking them ( which they are at the moment ), I am hoping the fund will do the *cough* gentlemanly thing and exit the room gracefully without slamming the door on my arse on the way out. Maybe I am an eternal optimist but I see no reason that having been loyal to Alara for some time that they would turn around and do this. The same funds may even be doing us all a huge favour buying back in heavy when the JV news comes and the whole project finally gets the de-risking these funds want.

Hope that helps you all some.

cheers

dt