Member Info for Walko

In simple terms OTN was set up as a sort of operating company for the development of Kalia � all contracts etc.. that would be entered into would be with OTN thus save guarding BZM from any possible legal action and associated claims if contracts did go haywire as OTN is an operating company only with no assets or nothing so if you sue them you get nothing much. The initial application for this was submitted more than 3 years ago to the then Minister of Mines Yansane Kerfala who was not very much impressed at the time. That is my simplified understanding of this, I may be wrong but I doubt it.

The amount paid was US $ 430 000 - the overdue period was 6 months - everybody is waiting with great anticipation to see if the wages for January will be paid on time (due about 25 January).

Not much money, lets see: 110 employees - outstanding wages for 5 or 6 months. Minimum wages are about US $ 1 000 per month. Some staff are on a lot more - I know of at least 4 that used to be paid more then US $ 5 000 per month. So lets say very conservatively US $ 500 per month/ per employee - as a lot are on technical leave etc... and that reduces the cost. As I see it that is lets say US $ 60 000 per month X 6 months (or more) - that is a lot of money say US $ 360 000. I will try to get the exact amount that was owing from Guinea later next week and let you know. I am also trying to get a copy of the famous letter send by the unions to the board and publish it for all to read.

They paid after they received a threatening letter from the unions - maybe we should ask the board to publish this letter, as I understand it was not all about the unpaid wages. To answer your question where will this go = I suggest nowhere at all. In my opinion the only option they have is to sell but how can you sell without a proper bankable feasibility study ?. A white knight may step in but I doubt it.

The latest is that the people got paid their wages owing (months overdue). Apparently the union wrote a strongly worded letter to the board threatening to write to the stock exchange itself if nothing happened with regards to outstanding wages. Later today there is a ruling in the Conakry court in the case of some former employees claiming outstanding benefits from BZM.

Today a letter was send by the unions to the BZM MD in Guinea Micheal Rinaldi -with a cc. to Chairman (Mike Farrow - CEO Julian Cheong - Simon Edwards (simon.edwards@bellzone.com, julian.cheong@bellzone.com, m.farrow@consortia.je) and some others) demanding payment of all outstanding wages for employees etc... - if BZM does not comply with these demands of the unions (ie. pay the long overdue wages due by 15th December) a copy of this letter will be send to the Ministers of Mines, some others and interestingly also to the AIM stock exchange............ There is an interesting last line in the letter send " please note that the threads and intimidation will not work anymore". The reactions of the Chairman and CEO to the posting of this letter on the 15th or soon thereafter will be interesting to observe..... For everyone's information I too am a shareholder, a very concerned shareholder, who also feels very strongly about the way the Guineans are being treated at this. Lets see what happens on 15 - 16th December. T

Part 3 - all the information mentioned or quoted in my message is available to all in the public domain except some alternative concepts and costing proposals. End.

Part 2 of the message It is no good dreaming that as part of the Chinese $ 20 Billion infrastructure investment in Guinea BZM will be better of (personally I am not so sure Guinea will be better of either; name me 1 Chinese success story in Africa if you can). Whatever infrastructure is required for the BZM operations will have to be provided by BZM. The current story on this subject is as follows for iron ore: Rail and port was US $ 4 billion, transport by road was considered and a new study was prepared an international reputable consultant, investment was about US $ 960 million to get an operation going and truck iron ore out via the existing Benty port (this port is a joke actually and is a perfect example of cheap s*&t that does not work at all, so you need a new port as well). There was an alternative study on this trucking done by a BZM director with many years of experience in mining infrastructure business and in Guinea and his proposal required only about US $ 400 million; at the time that was of great interest to the then CEO. But all that is irrelevant now as the iron ore development will not happen. Note that I have seen with my own eyes all studies (PFS, FS, EIA, SEI) and pricing done on the iron ore development and the required infrastructure. The Nickle development: I suggest that the cost estimates being floated for the development of the Nickel are most unrealistic (no metallurgical testing has even been done). I also suggest that to develop the Nickel will require a lot more than is currently stated – NOTE THAT SO FAR NO BANKABLE FEASEBILITY STUDY HAS EVEN BEEN COMPLETED FOR THE NICKEL DEVELOPMENT. Furthermore I suggest that there is no infrastructure solution to date except some wide open wording …… 5. The current team: make up your own mind, they ran Forecariah into the ground, left unpaid debts of millions in Guinea and then placed numerous people on technical leave again and again and wages have not been paid for a long time. The current team is also selling the equipment they got in country – interesting that if you are going to develop why sell your equipment. I am also aware that a number of people (ex-employees and ex-directors) are currently in dispute with BZM about entitlements payouts due to them. It has been interesting and even amusing to read some or the comments on this forum, production eminent, equipment being shipped from Australia, even some person named AJ Lucas as getting organized to start work in Guinea – I had a few good laughs. In conclusion I say this – I know what I am talking about but that does not mean you have to agree with me. I am not getting into an email war or into explanations and I will not answer questions. I know the project better and in more depth than all from day one. This project was at one stage the toast of Guinea but now it has become the dog of Guinea what is sad for Guinea and the population. Do your own r

Here you go - my last message on it - there will be no answers to any questions from anyone. Sell out and have nothing further to do with this company is my suggestion, but it is your money. Why a capital raising? I suggest that Chinasonangol – GDC – CIF – Hudson may not have sufficient funds to further invest into BZM. Note that the Angolan oil and gas company is being restructured and some of the original team partners are now not at Liberty any more, apparently Sam Pa is serving 70 or so years in China and the ex-chief of SINOPEC is also on vacation. As a result of this restructuring the income stream for some partners may have dried up (the daughter of president Dos Santos who was running oil and gas has also be replaced). Note that the IMF or World Bank are currently assisting Angola in their financial restructuring so they can get a bailout of sorts (I do not have the latest information on that). 1. The partnership with the Chinese "Chinasonangol - GDC - CIF – now Hudson or whatever" was frowned upon by the Chinese government when it was established. I was present both times when two different Chinese ambassadors to Guinea told Bellzone that the Chinese government has nothing to do with the partner they selected, one ambassador also told this to the President himself. 2. The Kalia resource is low grade iron ore - about 120MT is DSO but it is not very high grade - I think that 58 % was selling for only US 38 - 42/T (but I am not sure of that price so check it yourself). There is an enormous amount of magnetite in Kalia 1 and 2 but the cost to build a process plant to produce in excess of 20MTY is US $ S 2.2 billion for the process plant. I have seen these studies including the much cheaper alternatives and pricing with my own eyes. 3. The resource has also nickel but the grades encountered are only average to low - also the Ni resource is located in one corner of the Kalia permit only - it extends into the Mareela license. There is still the metallurgical testing to be done!!!! - suggest anyone in doubt contact the ex-chief geologist, Bernie, by email or phone as I have done. 4. Infrastructure required for whatever operation is immense and it is no good hoping that the government will contribute to the infrastructure needed for the BZM project or to think that the Simandou rail will be build and BZM will be allowed to use that, you are dreaming if you think that. There are no plans to develop Simandou in the future, the Government, Rio and Chinalco are still wrangling over things and that may go on for years yet, even the Chinese are baulking at the investment required for the Simandou rail and port project (however alternative proposals exist and in Gods own good time may even happen). It is no good dreaming that as part of the Chinese $ 20 Billion infrastructure investment in Guinea BZM will be better of (personally I am not so sure Guinea will be better of either; na