Ann: Company & Phase 3 Expansion Update & App 3Z, page-86

There is NO confidence in IOR at all that they can produce ore in any meaningful quantity at this point and why would you after phase 2 limping along. I have said previously that’s why it is critical IOR get the expansion done right and on time and then start filling the orders we all hope management will have negotiated burning construction. I think building the expansion alone is no longer enough to see significant SP movement, punters want to see proof that end product is at spec, leaving the gates and most of all cash is actually being received for it.

I have confidence that the expansion with the project team on board will get done. My biggest question is who is going to buy the product at sufficient qty when it’s all running as so far orders could not even keep phase 2 running even close to capacity.

IOR has a bright future IF they can get their ship together.