Ann: Company Update, page-12

The key point is that the company is now constructing the infrastructure and headframe for the Aluketiya mine, which ALREADY has a mining licence.

The delay in issuing the mining licence for Pandeniya (which already has the headframe installed) is possibly more a factor of the efficiency of the mining department or some local environmental authority in Sri Lanka than any delay by MRF.

No doubt this delay at Pandeniya is frustrating, as this was initially intended as the "start up" mine. But having thought ahead by having a "plan B", MRF can now start production in the near term regardless.

By organising a lease of the mine from the Aluketiya landholder (who has a mining licence but was not operating the mine), in return for a royalty, MRF has ensured that they have a route to production soon.

Starting a new mining venture in an offshore location is hardly ever smooth or without some sort of delay.