Ann: Company Update , page-4

Todays announcement maybe to soften up shareholders for a further extension to Hanlong, I hope that this is not the case.

To say that the $US is making finance difficult since DEC, is a mystery. The $AUS has been close or on parity for some months,

The Chinese want Molybdenum thats why Hanlong went on a buying spree buying into MOL and General Moly in the US.

The mine will take almost two years to build so how can anyone predict that far ahead. Mining is a risky business, diversification helps lower the risk. MOL to some degree will be able to service the finance with its Iron Ore sales. At current iron ore prices,shipping 1mtpa the company looks to net $90- $100 mil, per year, for at least five years.

Today Hanlong announced the appointment of Peter Mansell ( former chairman of W.A Newspapers and Western Power) to head up its expansion into becoming a major mining house.

We will know more by the end of the month, my guess is that finance will be delayed until conditions improve. Hanlong will forfeit $45mil MOL will pay back the loan $15mil.

Mol will then be debt free and able to pursue all avenues for finance.