what prior did not tell you the other offer

Hi Fellow Shareholders

What Prior did not tell you � the other offer

I have reason to believe that the other offer received by Admiralty and considered by the board of directors was from Hebei Wenfeng Iron & Steel Co. Ltd. (refer below for details on the company and also to its website which is www.wfsteel.com ) and further, that the offer was 50% better than the Icarus offer for both the guaranteed cash payments and royalty payments.

You will recall in the EGM, Mr. Prior confirmed that Admiralty received another offer and that the Board of Directors decided to proceed with the Icarus offer. In a discussion with one of the directors after the meeting the director confirmed to some shareholders that the Board did not believe that the company behind the other offer had the capacity to complete the transaction.

It is interesting that the Board considered that a newly formed BVI company (Icarus), guaranteed by a Hong Kong company whose 2010 filings with the Hong Kong Government regulators show no activities and no apparent assets would have a better capability to complete the transaction and develop the mining assets and pay the Royalties (refer to page 8 of the Notice of EGM wherein it states �The Purchaser has advised Admiralty that it expects to have access to sufficient financing to fund the full development of the Mineral Concessions within a year to 18 months.�) than Hebei Wenfeng Iron & Steel a company with 7,000 employees, total assets of US$1.03 BILLION, and substantial mining and steel experience.

Which company is in a better position to fund and develop the mineral concessions Icarus/Corsair or Hebei Wenfeng? The Board of Directors has made the judgement that Icarus/Corsair is better placed to ensure the development of the mineral concessions and consequently pay the Royalties due to Admiralty. It appears that they are so sure that they did not even bother to inform the shareholders of the financial details of the other (superior by 50%) offer or the company providing the offer.


Hebei Wenfeng Industrial Group

Hebei Wenfeng Industrial Group was established in September 21st, 2009, and it�s also known under the name of HEBEI WENFENG GROUP, the headquarters are HEBEI WENFENG INDUSTRIAL GROUP CO. LTD., with Mr. Wenkui Liu as legal representative, with a capital of 239.3 million yuans (US$36 million). The corporation is located at Hi-Tech Development Zone, South Side of Southern Ring Road, Wuan, Hebei province, China. The business units hold investments in mining factoring, hotels and food services. The group currently has 12.000 employees and the total assets are 15 thousand million yuans (US$2.26 billion).

Companies in the Group

The companies that are part of Hebei Wenfeng Group are: HEBEI WENFENG IRON & STEEL LTD, TANGSHAN WENFENG QIYUAN PIPE LTD. LTD and also, HEBEI WENFENG IRON AND STEEL GROUP that owns 49% of TANGSHAN STEEL PLATE LTD. (51% of the remaining is controlled by TANGSHAN STEEL). We will introduce the companies mentioned before:

1. HEBEI WENFENG IRON & STEEL LTD.

The main products of the company are plates, strips of steel and light rails, adding 3.50 million tons of iron, 3.5 million tons of steel, and 3.5 million tons of other materials. There is a wide variety of plates, among them structural steel of carbon in standard quality and premium quality, alloy structural steel, structural steel for vessels, pressure containers, boiler steel, wire steel, molds, beams for bridges, standard steel plates.

In the year 2001, the company obtained certification ISO9001 and in 2007 the plates produced by the corporation got the gold cup given by the Metallurgical Quality Committee of China. In the year 2006, the CE of Europe, certified boiler steel and container steel. To date the steel plates for vessels have obtained the CCS (China), BV (France), ABS (USA) and KR (South Korea) certifications.

From the beginning, the company has developed with an impressive speed and has obtained a great number of recognitions, such as:

Ranked in the spot 319 in the year 2009 �Chinese Top Companies 500�, 2006, 2007, 2008, 2009
Chinese Manufactures Top 500 in the last 5 years, ranked 175 in the year 2009.
Tributary contribution Top 100 for 4 consecutive years.



The company constantly worries about establishing, complementing and improving the decision taking skills, operations, control and other procedures linked to the administration and production. All the steps are developed in a very careful way, where each unit is responsible for their duties. At the same time implementing the internal audit system, ensures the proper functioning and coordination between different units. As for the administration of the company it has formed an integrated a key system to the finance unit. The good use of the ERP system allows to reflects and control in an efficient way all the productions and development situations of the company, achieving a control in real time about the different processes involved. HEBEI WENFENG IRON & STEEL CO.LTD. is an example of the use of these integrated administration systems of the iron and steel industry.

In these years the organization has always emphatic in establishing the contracts according to the laws and comply with them fully, it has been persistent in its principles �trust and the fulfillment of words as a base for everything�, reaching a rate of contract compliant of 100%, qualified as an AAA company, in the fulfillment of promises and a nice place to work.

During the last 8 years, the company has a contribution of 200 million yuans (US$30 million) to the Chinese Government; donations to the community are 30 million yuans (US$ 4.5 million), earning the trust of the clients and respect of society.

At the end of October 2009, the total assets were 6.871 billion yuans (US$1.03 billion), from which 3.717 billion yuans (US$559 million) belong to current assets and 3.154 billion yuans (US$ 474 million) belong to fixed assets. The passives add up to a total of 2.348 billion yuans (US$353 million), from which 2.048 billion yuans (US$308 million) belong to a short period passive and 299 million (US$45 million) belong to the long period passives. The assets are 4.522 billion yuans (US$680 million), where 269 million yuans (US$40 million) are for the concept of capital and 4.253 billion yuans (US$640 million) belong to retention of profit. Between January and October of this year the company accumulated a net profit of 465.7 million yuans (US$70 million).