Ann: Quarterly Activities Report , page-4

A vg day today on the market which may indicate movement at the station. tech it gave off a buy signal for first timesince Aug. Vol was also good and it has now moved off 2,5c from its low.

Having done some work in China I understand, a little, the time it takes to finalise a deal.It is not like going to Africa or Sth america or a western country. Mineral rights and the layers of bureacracy take time.If you want to be in LRL then you need to understand this is a different beast.

LRL has done a vg job in establishing the various local c/tees and advisors. It is playing the game like a local.In the interim they have done the due diligence on the Thernal coal project...AND...most importantly line up a large local JV partner.All of this work...if the deal is done.....will be reflected in enterprise value almost as soon as it is ann.

The instos,esp in UK,are generally not allowed to hold cash boxes.Once a deal is done they will come back in a big way. The realtionship with UK is another strenght of LRL.

If a deal is not done this half I expect they will move on to another region.I belive a deal will be done but eventually you will get your 100% and much more.

Management is very closely alligned with shareholders so this will work.20c is laughable but that is the nature of cashboxes but it takes the deal to change completley.

Hopefully the first signs of support for months presages the ann of the deal.