Ann: Successful $15M Capital Raise and Media Speculation Response, page-44

Hi Guys,

I think, collectively, we are getting close to the money on what has/ is happening.

As us long suffering MOD'ers know, MOD has been shopping around various funding options for T3 and providing third parties access to the data room.

My view is that MOD was looking for a GOR style deal whereby the sell off part of T3 to a larger company where a 50/50 JV is structured and the incoming party funds all the mine development, provides some cash for MOD and manages the mine build process. MOD then goes off and explores the rest of their belt scale land package to find another deposit.

This is working very well for GOR/ Goldfields and it would solve a lot of issues for MOD, in addition to providing them with upfront cash and the certainty of ongoing cashflows (50%) from T3 when it is operational.

IMO, SFR looked at the data room, really liked what they saw and decided that it was a better proposition to simply take the entire asset 100%.

IMO 38c is not an insult but instead a starting point.

LT copper sector followers well know that the development cupboard is bare for the sector and there has been a lot of M&A activity within the sector, including many ASX listed names in the past 24 months.

MOD is one of the few remaining attractive pieces on the chess board and, according to Sprott, control a large amount of one of only 7 belt sized sedimentary copper systems on the planet.

As we saw with NSU, Lundien tried to secure the Company for the Timok deposit but was too stingy and they were trumped by a Chinese suitor.

Lundien still has an empty development cupboard and are quite comfortable with African exposure. They may have learnt from their NSU failure.

There are a number of other mid tier and larger companies - both Western and Chinese - who will be looking at MOD and have been provided access to the data room. With SFR firing the starting gun they can no longer bide their time if they are interested in MOD's assets.

Whilst 38c for a complete TO of MOD is a starting point, I think that this won't be the last offer (either in a JV capacity or for full TO) that we are going to see emerge in the coming months.

I'm aware that "there is a deal to be done here" but the price needs to be above 50c. For me, it potentially needs to be somewhat higher than that.

Cheers
John