Ann: Financing Arrangements - Mt Carbine Quarry & Mining Leases, page-44

After having a close look at the term sheet the first part refers to an off take agreement for the tailings and stock piled hard rock. Then the second part which will soon be confirmed is a 50% buy up of the company this will be funded by a second party related to the off take company in Crominet, they have also agreed to buy all product off SEI at market as well give 2.5% totality on end product. I believe this will soon be confirmed once we have signed the contracts with the current owner this deal will ensure we will always have a sale for our product as we will only ever be exposed to 50% of the costs, Cronement is one of the largest whole sale suppliers of base and refined metals in Europe. I believe after reading the details in item B and C that the funding for the balance is already assured. Otherwise, Cronement would not have entered into an off take and JV if ownership was 100%. The letter of intent is only there as the ASX wanted all parties signed up first. Xmas prevented this on our part. On rebound, I doubt share holders will be given a chance to buy shares on a CR as the price Cronement will pay will be north of 1.9cents.