update on activities

Howdy

I emailed Stephen Mitchell the other day and asked a few questions. Have forwarded this on to a few but thought would share with all... the questions I asked are below, with Stephen's answers up top.

Cheers

Pukin


1. The corporate activity in the CBM sector in QLD and the consequent need for urgent independent reports by the Origin’s etc meant we slipped down Netherland Sewell’s list of priorities. We hope they will return to the job now for a late July finish.
2. Correct.
3. I am sorry, but we can not comment on corporate matters. This remains a key strategic asset and there are no plans to try and sell it. Given its excellent results and important location, I’m sure other CBM companies would like to be involved.
4. We are investigating all options at this time, including those you mention – indeed I am going to Canada next week. The massive acreage position gives us flexibility, but we are focused on determining the best way to demonstrate value for Molopo in both the short and medium term.
5. With respect to India, we are making slow progress. We did not wish to participate in the Govt. auctions as the blocks offered were inferior and the process seriously flawed. We have identified areas we like technically and commercially, and have gone straight to the asset holder. We do not expect any breakthroughs in the short term.
6. All your questions are very thoughtful, but many go to corporate matters that are difficult for us to comment on. However there are no plans to participate with Lucas in their forward CBM plans and we remain unsure what they will ultimately decide to do with them.


Kind Regards,







STEPHEN MITCHELL

Managing Director



MOLOPO AUSTRALIA LIMITED

LEVEL 14, 31 QUEEN STREET

MELBOURNE VIC. 3000

Tel: 61 3 9618 8722

Fax: 61 3 9620 2804


Hi Stephen,



I am a happy and dedicated shareholder in Molopo and have been holding for several years now. I am quite enthusiastic about several projects that MPO has on the go and would appreciate if you could please answer a couple questions for me.



1. Harcourt Reserves. These were said to be targeted to be released in April, then word filtered out that this was a typo and that they would be released in May, and now it is more than halfway through June and still there has been no announcement. What is your expected release date for these reserves.



2. South Africa: I know that flow rates are currently being monitored for reserves certification. When do you expect this certification to occur by? August? From memory data is required to the end of June before the data can be analysed for certification.



3, Gloucester: There is widespread talk that MPO & AJL have been approached in relation to purchase of the Gloucester field. Can you confirm this? Is MPO looking to develop this asset and retain it, or is serious consideration being given to the recent approaches?



4. Canada: This is obviously an asset with massive upside potential. Can you shed any light of how MPO intends to realise value from this asset, either via farm-in, dual listing on TSX, MPO going alone with the project or some other avenue.



5. India: In the past MPO has identified India as a potential area for future projects. Has any headway been made in relation to this?



6. Lucas Energy: I know that MPO has a lot of projects on the go. Lucas Energy is reported to be spun out of AJL to appreciate the value of the coal seam assets. Both the QGC operated projects and of course Gloucester are high class projects. Has MPO considered a tie up with Lucas Energy as a way to boost MPO's Australian interests and with these quality assets.



I know that I have asked a lot of questions, but would really appreciate any responses you can provide. I could ask a lot more... this company really does appear to me to have an amazing future. I will continue to recommend this share to everyone I know.