will vale execute, page-8

A recent research report from Investec that is accessible on the Aquila website quotes as follows:

"Belvedere: (24.5% owned) - This 2.47bn tonne inferred and indicated hard coking coal resource is located in the Southern Bowen Basin. The recent PFS has highlighted high capital costs in the order of $2.8bn and cash FOB costs of $70/t. AQA has the asset up for sale. We believe a realistic price, in the current market, should be in the order of $300-400m ($0.93 - $1.24/share). Vale?s exclusive right to
purchase lapses after the 4th June."

The whole of the report can be found at

http://www.aquilaresources.com.au/files/Investec%20Securities%20-%20May%202010%20Resources%20Quarterly.pdf

Previous reports from other analysts have put the value as high as $800m. We may find out more in a day or two.

regards
DF