3 questions: takeover/bmg/hughenden, page-6

Unless you want to be sneaky and use another IP address, I believe the website will remember that you have already voted, and will only count your vote once.

Here is an email that I have sent off to Nick just a few moments ago. I've tried to be as assertive as possible, without trying to sound like I know best. If this doesn't get the message across, then I don't know what will.

+++++++++++++++++++++++++++++++

Nick

Thanks for the prompt reply. Look I know the sample size is quite small, but the results of this poll that I put up an hour ago on HotCopper speaks for itself.

[http://freepollkit.com/index.php?browse=viewresult&pollid=1019575]

That poll is from a very small sample, but having spoken to shareholders and ex-holders who sold because of their doubts over the JV, it's fair to say that the majority of the shareholder registry would like a bit of an update.

I'm not asking for any comments on the court proceedings because I understand that there a policies with this; I'm just asking for you to reiterate to the market some things that you have mentioned outside of the market domain over the past month or so. For example 6 weeks ago you were on Sky Business discussing the company's plans and you mentioned a couple of things that I believe are worthy of an official announcement. Here's a link of what I am referring to.

[http://www.youtube.com/user/carpexplore]

6.20: You mentioned that CAP have the potential to conduct their own BFS if BMG don't cough up the funds for it.
7.30: You discussed getting cashflow from the first few years of operations and funding the ramp up to 20MTpa. Just curious, why did you mention this if you weren't confident of BMG arranging debt/equity funding themselves?

Then on BRR about 3 weeks ago in this interview...

[http://www.brr.com.au/event/81336/carpentaria-release-positive-pfs-outcomes-mr-nick-sheard-executive-chairman]

...you discussed the following.

1.30: Even if BMG couldn't fund the CAPEX, there are funds on the side that have expressed their interest in the project.

It's fair to say that the above 3 points are quite price sensitive for CAP and it demonstrates that the company has plans to develop Hawsons even if BMG don't won't to co-operate.

Is it too much to ask that this is formally told to the market? The court case need not be discussed.

For example...

"Carpentaria is pleased to to provide the following update on its Hawsons Iron Project. Since reviewing the PFS, a decision has been made to move towards commencing a BFS which will take approximately 18-24 months to complete. Carpentaria has a group of geologists in Broken Hill ready to begin the initial aspects of the feasibility study which includes further metallurgical work, environmental studies and drilling to upgrade certain portions of the inferred resource into a probable (P2) reserve. It is anticipated that the work for this BFS will be contracted out to an individual third party company, and will be funded by BMG as per the joint venture arrangement. In the event that BMG do not have adequate means to further their participation in the JV, Carpentaria is exploring other avenues to keep the project on track for initial production by the end of 2014. Carpentaria has been approached by various groups expressing interest in the project, and updates on these discussions will be addressed with the market accordingly."

If I was a shareholder in a company who had been troubled by a JV partner, an announcement like the above would be music to my ears, and would reaffirm my belief that the BMG problems is just a short term concern in a long term project. It would show that the company is taking control of matters, and is not afraid to leave a partner at the side of the road if they aren't prepared to pull their own weight.

With 87% of shareholders indicating in the above poll that they believe CAP can do a better job of addressing the BMG issue, I trust that you know what is best to do from here.

Regards,
C.

+++++++++++++++++++++++++++++++