Ann: Trading Halt, page-3

Hi Paavfc

Well there's probably never been a worse time to be a copper explorer no matter how good the prospects.

Personally I think they have been pretty good with their cash management but sooner or later they needed to tap the market. The MD (Robinson) and Exploration Director (Bewick) are still earning what they were 2 years ago: approx $800kpa combined ($340k/430k) so they are almost half the burn rate alone. SP was about $0.20 back then.

This CR will give them a good 2 years to weather the storm. 40m shares @ $0.14 (134m on issue) is double where they could easily have been. Thank God for a tight register.

Macro economy couldn't be worse: low growth, China slowdown etc but the drop in AUD makes us more attractive to international investors hence Sprott. Eventually the next cycle will begin. The trick is to stay alive long enough to ride the upswing. You'd never plan to rise at this point in the cycle but it is, what it is.

Let's hope that two years is long enough to see the CU price above $US3/lb with the current exchange rate and some economic growth.

All up more good (better than fire sale price, AUD, 2 years of funding and limited dilution) than bad (crap economy).