Ann: Mt Bevan Joint Venture Update , page-7

Hi guys,

Looks like we are still awaiting phase 4 to be approved by Haw so that the work on site can actually be carried out. We can propose to spend $5m on it but if Haw does not agree, we can't spend $1.

Lcy can only spend what they want to spend on internal studies or confidence building reports but not on site or on any metallurgical work that would change the JORC status of the project because it is a JV.

I've been saying this for two years now and I'll repeat it again:

IMO, Haw is 100% to blame for where we are right now.
The way I see it is that they are pissed off with LCY for pretty much stealing 60% of MB for just $3.5M. They must have been under a lot of financial pressure to actually agree to that deal.
Well done to Lcy for getting this deal over the line but maybe not so well done for allowing Haw to have an equal say in the running of the JV.

This equal say, in my opinion, has caused the problems that we have.

I believe that Haw, who are not really interested in the iron ore, are delaying everything that can be delayed.

Why?

To frustrate LCY and NMDC to buy them out and pay them more then its worth for the remaining 40%.

Haw has money in their bank account yet how long did it take them to pay back what they owe us? And how long did it take to even work out how much do they owe us?

I have spoken to LCY few weeks ago and asked about the stage 3 results and why are they nearly one year late.

I was told that they can't release the stage 3 results because there is still an outstanding amount to be paid to SRK and they are not allowed to pay that amount without an approval of their JV partner.

Today's announcement confirms my thinking and what I was told.
Haw has still not agreed to the stage 4 budget!

To be honest I can see where Haw is coming from. IMO they know that there really is only one real buyer for the remaining 40% and after months of negotiating with LCY they must already have a pretty good idea about what price they will get for their portion of MB.
If that's the case then why would they want to spend even a dollar on MB when they will not get it back?!!!

I think that this is our problem.

In principle I can't see anything wrong with management of both co's trying to get the best deal for their shareholders and playing the game their own way but at what bloody cost to their shareholders????

Both LCY and Haw's sp is at record lows!
Shareholders are suffering while the Haw directors are getting paid!!!

This is bullshit and unfair on us all.

I would therefore ask the Haw shareholders to start lobbying their management to pull their fingers out of their backsides and get on with the JV!!!

As always, all in my own opinion.