thoughts on the egm that never was.

The EGM that never was, a good result for all concerned.

I attended the scheduled EGM this morning and arrives at 10:15am. I thought that something was up, as there was no represenatives from Link (share registery) to welcome and record attendees. The number of people attending was small, maybe 10 people not including CAP employees. One shareholder travelled in from Darwin and I travelled from Sydney.

When Nick arrived, Edward was with him and just the two of them sat at the main table to adress the meeting attendee's. They body language (IMO) also suggested a much more amicable relationship between the two and no other people from ASI / Pure metals attended (Wilson Cheung or Linda Lau).

Whilst this latest agreement will not ensure that the BFS Will be completed for Hawsons, it gives CAP a much more certain future and if Wilson accepts a seat on the CAP board, we will have our two largest shareholders represented on the CAP board, both with differenent connections to major Chinese steel mills.

From what was said at the meeting, my understanding is as follows:

# Pure metals to pay the liquidator of BMG $3.25 million, off which the funds will be dispersed to the creditors of BMG, which includes ASI.

# CAP will not match the bid, hence waving its pre-empive rights.

# Pure metals to pay CAP monies spent to date on the HIP, for which BMG had not paid CAP, which is $3.8 million.

# A new J/V to be established for Hawsons, with the $5 million going directly into the J/V "vehicle", not into CAPs bank account.

# Once the $5 million is spent, future expenditure to be 60% CAP and 40% Pure Metals. This will greatly reduce CAPs annual cash burn.

# If Wilson Cheung accepts a seat on the board, this will be an addition, not a replacement.

# no mention of CAP retaining a free carried interest in HIP, so I assume this is not covered under the new J/V (should have asked at meeting !!).

# BFS expected to cost $20-25 million to complete, approx. $4 million spent to date. With the $5 million added in from this deal, we will need to secure more funds in say 10-20 months time. Environmental study and BFs should be completed by early 2014. All access issues at Hawsons resolved.

# Assays still at the lab regarding out tin / tungesten project, grade has not yet been confirmed, so management still not sure if it will be viable to mine.

# Pure metals J/V covers HIP only, does not cover other CAP projects.

All in all, I am pleased with the result. Whilst it does not guarantee that the BFS for Hawsons will be completed, it provides a great platform to build from and enables CAP management to focus on the drill bit and the ground, not on the courts and their lawyers office.

I am also happy that Nick is staying as the CEO of CAP.

Edward, please correct anything I have wrong and sorry for any spelling mistakes (typed on ipad).