whos gonna take up the offer, page-2

business valuation Company Announcement Office
Australian Stock Exchange Limited
Level 4, 20 Bridge Street
Sydney NSW 2000
7 September 2006
STOCK EXCHANGE ANNOUNCEMENT
Business Valuation
Cominco Pty Ltd
Cominco is the construction minerals company which operates a construction stone quarry 150 klms due west of Shanghai. This established and profitable business is a joint venture between MSC and Chinese partners. The quarry has recently expanded production from 800,000 tpa tonnes per annum to 1.2 Mtpa. which ranks in size as the fourth largest producer in the greater Shanghai region.
MSC entered into an option agreement to sell the quarry to China Century Growth Fund Limited, (a related party), at independent valuation and this option is in process of being exercised. MSC is sponsoring an ASX float of CCG for later this year. The independent valuer is DON REED & ASSOCIATES Pty Ltd, a leading extractive industries consultancy and valuation firm in Australia with experience in Chinese quarry businesses. The valuation is A$11.25 million which represents a 46% capital gain to MSC since its acquisition in March 2005. In addition, MSC has received interest payments on its Convertible Notes investment at 20% per annum. MSC holds A$2.7 million Convertible Notes which may be converted at any time into 35% Cominco equity. Although MSC has received very good value from this investment, the ongoing future value growth for this business is considered to be at least as equally promising.
The Chinese construction industry continues to be generally restrained by the strict government anti-inflation controls currently in place over the luxury housing and commercial building sector, however the general construction market continues to exhibit continued volume growth in the Shanghai region with firm stone prices and the medium term outlook is considered strong.
C V Alexander
Managing Director
About MSC:
MSC has commissioned a world class china clay (kaolin) project at Skardon River, in northern Queensland which is currently in the marketing roll out stage. Additional premium quality kaolin projects are being developed in China and Western Australia which will transform MSC into a leading regional based supplier with a full range of exceptionally high grade kaolin products for the paper, paint, polymer, cosmetic, pharmaceutical and ceramic industries focused on S. E. Asia and selected world markets.
Contact: Vic Alexander, CEO Tel: 02-9290 2400