Ann: Corporate and Project Update , page-41

Hi Bargain

Detailed info you have there - which I can't find on any PAX ASX announcement in 2012 or 2011. I'd be grateful if you could point it out for me.

Latest I could find for DP is from the 9 July 2012 CR Presentation which mentions internal modelling for a 30 MW plant showing a total generation cost of around $60 per MWh, which they plan to sell for $150 per MWh. I know they're hoping to use some supposedly unused production wells at Sibayak, in unknown condition (and refurbishment cost?), so the $25.9 mill you mention must be for building the 30 MW plant plus transmission.

If so, it's pretty cheap compared to the $50 mill Lihir Gold spent on a 30 MW plant in PNG in 2005, which also did not include any drilling.

Sokoria is also supposed to be 30 MW, also with generation cost of $60 per MWh, and your numbers suggests a capex of $165.1 mill. This sounds closer to the mark, with provision for drilling say 10 wells. The problem is I just can't model that generation cost for that capex. Break-even cost for me is almost $120 per MWh with 30 years depreciation and 8 % finance. This doesn't make their expected tariff of $125 per MWh sound so good.

Last problem is raising $28 mill in Singapore. How much of the company do you think will be owned in Singapore and how much will left for us in Australia? At present the ratio will be 28 to 1.