Ann: Company Update , page-6

Fontenay,

I can assure you that the company will not be granting Hanlong any further extensions. I also think Hanlong's options will now formally be allowed to lapse.

Until the AUD depreciates to 90c-95c and/or the Molybdenum price increases to $20/lb it looks as if we will not be getting our funding.

This is not an absolute catastrophe in the overall scheme of things.

Moly's iron ore operation, whilst small, is beginning to look very, very lucrative. With spot iron ore prices heading towards $200 tonne (see previous posts), Moly can simply operate as a 'junior' iron ore producer for the next 12 months and potentially lodge $100M+ profit in the bank.

In a years time, sitting on a huge pile of cash, when the economic variables have moved (favourably) as expected, obtaining the finance shouldn't be to much of a problem!!