What's up with ANMCA ??, page-3

<< may just represent those getting out before the 30 cent installment payment is due >>
If that is the case they are getting out early. The 30cent payment is not due before 31 Jan. 2003.
Could be tax selling before end of tax year.

<< there is a second equal payment due in October >>
The next distribution payment is due 23 Nov. 2002.

<< at these prices that's a pretty good return? >>
You are right there - there are still 5 payment to come. Each @ 3.2c = 16c.

<< This should be an incredible investment. >>
Anyone buying at these levels should do well.

Buy @ say 25c + 30c installment = 55c invested
Distributions: 5 payments @ 3.2c = 16c
Return on 55c invested = 29% assuming the shares are worth 55c on 23 Nov. 2004 when the DES are changed into Ord. shares and not calculating NPV.

AMC is on track - read this interview with AMC's CEO Rod Sharp :

Open Briefing with AMC`s CEO on Leighton Contract

AUSTRALIAN MAGNESIUM CORPORATION LIMITED 2002-05-14 ASX-SIGNAL-G HOMEX - Brisbane

CORPORATEFILE.COM.AU

Australian Magnesium Corporation Limited (AMC) recently announced
that it intends to appoint, subject to final review, Leighton
Contractors Pty Limited as Principal Contractor for the development
of the 97,000 tonne per annum Stanwell Magnesium Project. Leighton's
role will encompass approximately $1 billion worth of engineering,
procurement and construction (EPC) activities covering all areas of
the project. What's Leighton's experience in performing EPC contracts
in the metals processing industry?

CEO ROD SHARP

It's important that we clarify that Leighton's role as Principal
Contractor is to manage the safety, quality, schedule and cost of the
entire project. Leighton will supervise a strong group of
subcontractors including specialist design engineering and
construction companies such as Kvaerner Worley, SNC Lavilin, IMS,
Baulderstone Clough and United. Leighton has a unique record in
successfully bringing together major projects in Australia.

CORPORATEFILE.COM.AU

What other contracts have been awarded for the development of
Stanwell, what's their value and what remains to be awarded?

CEO ROD SHARP

The first contract we announced late last year was for a local
company, Egis, to undertake site engineering work. That's now about
75% complete and is on schedule. Apart from the $1 billion Leighton
contract, there are a number of smaller turnkey projects encompassing
power-related infrastructure, gas supply, control systems and an acid
plant. Those contracts total around $150 million and are on track.

CORPORATEFILE.COM.AU

What protection does AMC have in the event of under performance in
quality, time budgets or financial budgets by Leighton or any of your
contractors?

CEO ROD SHARP

The contract with Leighton has a sensible balance of performance
incentives and penalties. We have negotiated, in conjunction with our
banks, appropriate penalties for the non-achievement of clearly
specified quality, time and cost requirements. We've assessed the
risk involved in performing each part of the contract and who can
influence the outcome of each task.

Likewise, there's a bonus element if the contractors achieve an early
and successful ramp up and that has obvious benefits for AMC's
shareholders.

CORPORATEFILE.COM.AU

You expect full construction mobilisation in the September 2002
quarter. When do you expect project commissioning and is this in line
with the timetable outlined in the prospectus?

CEO ROD SHARP

Commissioning will progressively proceed from early 2004. We expect
first metal in the fourth quarter 2004 and that's consistent with the
timetable outlined in the prospectus.

CORPORATEFILE.COM.AU

Why have you made the Leighton contract announcement when the
contract is subject to final review?

CEO ROD SHARP

We announced Leighton as our Principal Contractor because our
negotiations had reached a mature stage. We'd been working with
Leighton for five months and it was clear we were heading towards an
agreement that was in the interest of both parties. We received Board
approval for Leighton to be appointed the Principal Contractor and we
felt that it was material and therefore appropriate to disclose to
the market.

CORPORATEFILE.COM.AU

AMC intends to finalise the Principal Contractor agreement with
Leighton in the current quarter. As AMC and Leighton finalise
negotiations, Leighton will perform the key project development
functions under an exclusive interim services agreement. What is the
difference between the interim and final EPC contract in terms of
value and work covered?

CEO ROD SHARP

The interim agreement allows AMC and Leighton to maintain the
momentum we've achieved in engineering and procurement activities.
It's simply a services agreement whereby Leighton will undertake an
AMC managed scope of work. The interim contract is to ensure that
Leighton and AMC continue the program we've been developing. The
final agreement will specify, in considerable detail, the roles,
responsibilities and all associated commercial and contractual
arrangements.

CORPORATEFILE.COM.AU

Can AMC potentially be exploited by awarding an interim contract and
then exclusively negotiate with the same party on the final EPC
contract?

CEO ROD SHARP

No. We've structured the arrangements in the best interests of our
shareholders and the development of the Stanwell Project. We've had
five months of ongoing discussion with Leighton, examining various
project delivery options, and are very comfortable with the outcome
of negotiations to date.

CORPORATEFILE.COM.AU

Thank you Rod.

For previous AMC Open Briefings visit www.corporatefile.com.au

For further information on Australian Magnesium Corporation Limited
visit www.austmg.com