AGM Notes, page-10

Hello Flinders shareholders and interested parties.

Apologies for the delay in posting as my home computer didn't work when I flew home from work so I am using the local library. I was fortunate enough to attend the AGM and a big thank you for those from the East and outside the Perth metropolitan area who attended. it was great to meet so many sincere and genuine people.

I would describe the AGM as a comfortable points decision for the minority shareholders. There was up to approximately 30 people there and we had roughly 5 hard core shareholders really questioning the BOD. We had another roughly 5 hard core shareholders who popped up and added great points to the discussion and roughly another 5 hard core shareholders putting a personal perspective into the AGM. The BOD I considered to be defensive, elusive and not willing to share too much information or be positive. The results of the AGM with approximately 33% of votes against the resolutions really highlighted what a good percentage of shareholders thought of the BOD's performance and it really backed us up.

When the Chairperson and Managing Director where I would say were negative about posting positive information about our great company, especially the comments made in the public domain about what BBIG want to do with the PIOP, a question put forward was along the lines of "Australia is an intelligent and educated country, surely the BOD can find a quality lawyer who can place a disclaimer on possible positive announcements that we could make about our company on BBIG wanting to use our ore". The Chairperson said he would take that into consideration. Feel free to write to the Chairperson to follow this up. There are no excuses in my mind stopping a positive flow of information to the market.

A question was put to the BOD about how did they feel about having 33% of the votes go against them, especially taking into consideration most of the for votes were simply from Todd. The Chairperson acknowledged it seemed the number 2 investor voted against them and the BOD respect peoples right to vote.

When they tried to stop the meeting and stop further questions, a gentleman from the front popped up and said that the meeting was right to be called over. I questioned who this person was and was told that he was the companies corporate lawyer or words to that meaning etc. He also had a lady with him and the only thing she did was hand out some cakes. If she was getting paid to be there she must have had one of the highest paying waitress jobs in Australia. Comments to the BOD on closing down the meeting were "You are here to also represent minority shareholders. You can't expect minority shareholders who don't have the resources of a major shareholder to fully understand your meeting procedure and you need to explain yourself better" The BOD didn't have a reply. I believe the meeting was cancelled early and I believe it was stated that there would be a question time at the end. I asked if anyone recorded the meeting but didn't get a reply. The Chairperson seemed to want to close the meeting as he walked to the coffee area to discuss questions there, rather than be at the front with the other Directors. it was only because of the strength of the minority shareholders we get to ask more questions.

The Managing Director made some comments that March 31st would be an interesting time for Todd as an acknowledgement of the date in the public domain that Todd has given themselves. As we where walking out the Chairperson told a shareholder not to sell his shares and he will see him at the next AGM. Another shareholder said "are you giving out personal advice?" as they walked past. Maybe shareholders can write to the Chairperson and ask him if they should sell there shares and why etc if he is interested in making comments like that.

There was a lot of disappointment with one of the Directors not being there for the second or third year in a row. A plane was supposedly cancelled so not only was the AGM missed but also another Board meeting.

An OCJ representative was there not asking any questions but taking notes. I believe they confirmed they read HotCopper so that is great. I and others thought it was sensational they seemed to vote along similar lines to the minor shareholders.

it was advised that the structure of this AGM was the same as the previous one which shareholders disagreed with. We were quoted $2 million to build our mine which nobody agreed with and from memory we were quoted a lot less than that in the past. I have shares in a company which built an iron ore mine so I will go back to them and get some information on their cost to build that mine.

The BOD downplayed the quality of the PIOP in the current market. A wonderful shareholder popped up with our drilling results and said you have two great holes at above 60% iron ore so why haven't you drilled in between those? The technical people said the last drilling wasn't for the amount of ore but for the quality and use if it etc. There is shareholder concern that the BOD don't want us or the market to know how much quality ore we have to downplay our asset.

The minority shareholders were direct, professional, polite, forthright and acted in good faith. I believe from the responses from the BOD that our concerns are substantiated and work still needs to be done to get more positive information etc out to the market. I look forward to the next 6 months and will be in Melbourne in March from roughly the 10th to the 17th next year if anybody is free to catch up.

Have a wonderful week!

Geoff