very interesting on hebei steel , page-31

Hey Auto and others,

I have spoken in depth with the company and the resource upgrade to 650mill tonnes is due out shortly. The resource was finished drilling for this upgrade months ago but with the huge backlog in lab sample testing Genalysis is still processing the samples. This is beyond managements control.

I will repeat - there will be no rights issue!!

The company has advised me that they have hired Merrills to secure corporate equity partners at the project level to raise the ~$300 mill in equity required.

This will be for a 40-49% interest in the project equating to a capital raising well over $1 per share.

With regards to ML lending the stock to third parties, management has threatened ML with pulling the corporate deal unless they guarantee that this will stop immediately (15/09/08). They have obliged.

Please feel free to ask if you have more queries - more than happy to keep fellow shareholders well informed!