impressive order book, page-2

Future Project Pipeline Update TAKEN FROM MF GLOBAL\

¦ Reed Resources’ Barrambie Vanadium Project: Of the $489m budget estimate provided by NFC/Arccon, we assume that Allmine work will account for roughly half and will earn a 10% net margin (in line with industry average). Groundworks to commence before year end, subject to financing. Key to NFC/Arccon being preferred lead contractor on the Project is the ability for NFC to project finance 70% of the total funding requirement. Reed is still evaluating its options to fund the remaining 30%.

¦ Poseidon Nickel’s Mt Windarra Project: Current project scope is for $35m revenue, of which we assume Allmine accounts for around two-thirds (again assuming 10% net margin). Allmine’s scope includes design and delivery of a flotation concentrator and provide associated infrastructure. NFC is expected to facilitate at least 80% of the necessary financing for the concentrator plant.

¦ Marengo’s Yandera Copper Project: NFC/Arccon have been selected to undertake the process plant design work which is a next key component of the DFS. Whilst a full budget for Project development is yet to be finalized and involvement of Arccons’ construction works not due until late 2012, Allmine should earn a fee for design work completed as well
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Arccon Other Arccon & MCC / Sino Iron Arccon & NFC Project
Equity Research | ASIA (Australia)
05 September 2011 COMPANY NOTE | ALLMINE GROUP
as a project arranging fee for bringing NFC to Marengo, which we expect to be received in the current financial year.

¦ On 1st September, NFC/Arccon announced an MOU with Ironbark Zinc for development of the Citronen Project in Greenland. Work may commence in Q212. Given that NFC can mobilize a large number of well trained Chinese works across the World in conjunction with Arccon’s highly skilled and experienced Project supervisors, we envisage offshore projects becoming an important new dynamic to Allmine’s organic growth potential

Other
¦ Allmine continues to work on the Sino Iron Ore Project, which we believe still has significant scope for contracts to be awarded to Allmine
¦ MCC is actively involved in the development plans for the proposed Ankatell Port near Cape Lambert, which could result in a significant amount pipeline of work
¦ At any one time, we assume Arccon can effectively manage three large scale projects, and maintain a project pipeline in the order of $3-4bn.