Ann: Mallee Bull Update, page-26

Given the announcement today and the present JV arrangement I don't think T1 is saleable. If it was simply a dig and haul operation maybe so. The JV seems to be approaching T1 as a maximisation exercise for the whole MB deposit. I think PEX would need to consider selling the entire interest in MB if it had your plan in mind. Let's face it the ore body has sat undeveloped for a fairly long time and was only ascribing a few tens of million (~$30 million) to the market capitalisation of the company before Southern Nights came along if my memory serves me correctly.

I've seen up close and personal how major resources can be given away for a song. I made this grade comparison some time ago of the Kitumba copper deposit in Zambia against other copper development plays that Sandfire ranked as the top 10 global copper opportunities. MB has similar grade to Kitumba.



Kitumba was recently sold (stolen) for ~$5 million.

Kitumba contained 24.9 million tonnes at 2.32% copper in a Measured and Indicated category (89% of the total resource) for a total of 577,000 tonnes of contained copper metal.

Mallee Bull contains 3.9 million tonnes at 2.3% copper for 90,000 tonnes of contained copper with 16% in an indicated category (no measured resources), 84% inferred.Esh