Ann: Quarterly Activities and Cash Flow Report 30, page-8

re: Ann: Quarterly Activities and Cash Flow R... I agree with Chair. The wording leaves room for yet another extension and I feel more delays are foreshadowed in this announcement. In the 01/06/2011 presentation ATC ferrotungsten commissioning was displayed at "Apr-11 - Jul-11". Two months later we can draw the conclusion that hot commissioning isn't about to START before October at the EARLIEST.

What I am more concerned with though is the current cash position. According to the quarterly report, they have 4.7 million in the bank. Sept. quarter cash outflow is expected to amount to 1.5 million. That obviously does not include expenditures for the furnace inner refractory liner which is expected to amount to USD 3.6 million. Since those 3.6 million are not included in the Sept. quarter cash outflow estimates, we can safely assume that hot commissioning won't start before the December quarter.

Anyway, for the rest of 2011 we can expect cash outflows of 1.5 million for both the Sept. and Dec. quarter plus the costs for the furnace inner refractory liner plus initial feedstock. Even if the chinese Partners were to finance 40% of the inner refractory liner, that would leave HAZ with expenditures to the tune of 5.16 million PLUS the costs for initial feedstock which I remember was going to be financed by Hazelwood alone.

IMO the bottom line is this: HAZ doesn't own the money that is required to get production started and we are in for another cash raising well before year end, probably before the end of the Sept. quarter.