new start, page-51

Their strategy is quite clear I think and there will be no sale nor a serious look for a strategic partner just yet (they have actually stated this).

They have the funds for a solid go over the next 18 months. Their aim I feel is to get the community approvals within the next 6 months (at the latest) then drill the hell out of it and shore up their resource base. This will make them more attractive in 12-18 months time when they would concentrate more on the strategic partner search.

It's a roll of the dice on three fronts:

1. That the community approvals will come through over the shorter term - if at all,

2. That if they do get the community approvals that their drilling will be successful - actually they need it to be very successful, and

3. That they can do this and get a strategic partner before the money runs out - but even if it does run out they just need the share price to rise a bit an issue more shares. They do not have a lot of shares outstanding and even though it would not be ideal a (for example) 50m share issue @ $0.20 would give them another year breathing room. And fully diluted would still see only 200m shares outstanding. Not bad really and all thanks to the wealthiest person in the UK - out major shareholder.

Basically that's the strategy. First step the community approvals and we do need them soon.