Ann: Target's Statement , page-2

Dear All

The recommendation of "accept" was to be expected and shows that the so called "independents" know where their next directorships are coming from.

Basically, the KPMG valuation was based on a simple DCF and did not recognise the current cost of building a state of the art nickel smelter which should have been a highly relevant factor in the valuation.

KPMG in Australia are not at all known for valuations in this area and now I know why!

Also not surprising that the independent directors will be selling as they only "topped up" in the two months leading up to the Glencore move. Sounds like they got themselves set!

Unfortunately, this does make it harder and our fate may well be determined by those who recently bought the 100 million or so shares above 87 cents (and the existing insto shareholders) and their capacity to extract a higher price along with what ASIC have to say.

Cheers EOS