Ann: Drilling Programme Complete , page-18

Nose!

4) CAP's 50yr mining is based on POTENTIAL... ie if finding more mag Fe. ROY & PDY say they can get to 8 Bt. ARH can purchase total 150 Bt from Mineralogy (own by Clive Palmer, who is also 67% holder of ARH). ARH's mining should be about 1000-2000 YEARS.

5) CAP owns 60% of 1.4Bt @ 15.5% (130mt contain Fe) Vs FWL owns 570mt @ 27.5% (157mt contain Fe). FWL has more resources than CAP & only one-third of mc. FWL has TFA to fund expenses.

6) CAP's IRR is 23%, which is a very average project. FWL's IRR for MPI should be around the same mark.

7) CAP's CAPEX is $3B vs FWL's MPI is around $700-800m with similar IRR. When funding gets tough, it would be hard to fund big CAPEX projects like CAP's. Rio just cut back billions of Fe expansion projects.