Ann: Notice of Initial Substantial Holder, page-13

" The Stage 4 expansion study continued to advance with a refocussed mandate, as the efficiencies and capacities of the various Stage 3 units of equipment in the plant were realised and became better quantified. This has presented a unique opportunity to improve on and optimise various aspects of the Stage 4 study and resultant expected future outcomes and underlines the feasibility of increasing production up to 8.7Mlb U3O8 pa at a time when higher uranium prices justify expansion. During the interim, various piloting and testing programmes will continue in order to consider the available options and enhancements in preparation for this future expansion. The goal of this work is higher production, with reduced unit costs and improved process efficiencies, while reducing feed grade into the plant to the reserve average of 520ppm U3O8. The work undertaken will ensure that the project will be in an excellent position to respond at short notice for expansion when the price incentive is considered to be sufficient."

(Break even for Langer Heinrich is $29/lb hence 8.7mlb annual production x $70 = $357mpa nett income)