Cline Mining Corporation T.CMK

AGM Brief

[ark88]

I'll post a detailed summary after lunch, but for now, here are couple of important take aways.

1. approx. $30 mil. cash position now.

2. Have let go approx. 140 employees to conserve cash.

[shane117]

Thanks Ark!

[ark88]

- about 70-100 people in attendance with mostly blue suited types and handful of 'small' shareholders - Aprrox. $30 mil. cash position at the time of AGM. - Allen and Blue seams producing at this time with 3 mining crews in 1 1/2 supersections. - approx. 140 employee laid off. - Inventory at present is sufficient to load one Panamex vessel (50-75K) - Inventory capacity at mine and at

[riverrocks]

Well that sums it up for me now i don,t have to go. Thanks

[shane117]

Ark, what do you mean by "shut in"? And what has to happen for the mine to be "shut in"?

[ark88]

If they stop operating. Couple of other observations. Dave Stone bought $150k worth of stock after doing his DD on NECC. He thinks NECC is a world class asset. Darren Nicholls also bought shares. He was not present. The whole picture seemed pretty dire to me. A real roll of the dice at this point. It all comes down to sales. I guess the minor positive is why David and Darren chose to join the

[Hourglass11]

Ark,   Thanks for taking the time to attend the AGM and passing on firsthand what was discussed. For those of us living in the West, this was good to hear.   Hourglass11

[recy123]

Great Summary.  Thx.

[shane117]

3 panamex vessels to break even for the year is not alot of coal. Approximately 225,000 tons. But yes, it all depends on sales. They still have to sell that amount of coal.

[Eigen337]

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[ark88]

There was reference given. I would assume 140 less 305.Also,they have had discussions with 4 parties so far regarding offtake arrangement.>

[ark88]

Cleaves stated that they need $45mil. for both capex and opex for the balance of the year.So, based on 3 panamex vessels to carry 2012,and based $75+40 for both cost and transport, one could guesstimate sales price.>

[ark88]

This is just my observation. Mraz was absent from the head table. In fact, Knight thought that he was not even present, until he raised his hand from the back of the room. Clearly, Mraz has been pushed aside. Ken Bates was clearly nervous and seem quite frankly an old man who has seen better days. As the meeting went on, it seemed like Cleaves was in charge. I suspect it was he who brought the 2

[Eigen337]

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[ark88]

David Stone talked about resetting everything at the mine. He was unprepared to speak to production numbers. he said his first objective is to review and prepare a new production plan. Wait and see. No timeline given.

[ckstar83]

yeah i remember david stone talking about resetting everything at the mine as well, dotn know how exactly that will happen without costing a lot of money, hopefully they will do it efficenctly without being a costly venture................ im kinda glad that Mraz is no longer COO to be honest, it was his primary job to get the mine up and running and it never materialized as quickly as possible...

[Eigen337]

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[ark88]

Eigen, what can I say. I totally agree. I said the same thing a long time ago. If they go under, one could point to the strategy of exploiting the blue seam as the main reason.   Look, perhaps it's not too late that management finally realized that given the macro and micro situation, they decided to bring in guys that hopefully are very good at operating a mine in a cost cutting mode

[ckstar83]

agree with you ark88, hopefully stone can operate mine in a cost efficent manner, sean casey did mention something about hopefully securing a sale within the next ten days? do you see any merit in that?

[ark88]

My honest take on that is not too positive. It kind of felt like he had to say something positive. Just my take. Hopefully I'm wrong. Btw, the possible sale is with an Asian customer. very little demand or interest coming from Brazil or Europe. It's all about Japan and China.  He seemed to be really excited about Japan.

[ckstar83]

thanks ark88, it seemed kinda weird that bates didnt say anything during the Q&A (could be pretty dissapointed with the current state of the company).......than again, he's been a director of western coal in the past and been in the coal industry for many years, so he knows all too well about the ups and downs of the met coal industry (jmo)

[ark88]

This is just my opinion, but I would not be surprise to see a NR stating that Bates will be retiring.He seemed really out of touch.JMHO>

[mr1derful]

Did the management team have a Plan B if the coal markets don't recover in the second half? Or are they crossing their fingers and hoping that it floods in Australia? Too bad these guys don't mine premium hard coking coal where the pricing and demand are much better than the semi-soft market. Talk about poor execution not being able to produce when the market was strong.

[Tinyhopes]

To ark88 Thanks for all of hard work trying remember all that was said and done!  You have stood up very well for all the questions ask by the poster on Cline Hats off to you. And thanks to the others that were there for input as not all of us live back east. It sounds like Mr. David J. Stone to be Chief Operating Officer (COO) and Mr. Darren Nicholls to be Deputy Chief Operating Officer of

[cooper90]

Hey Ark88, Sorry this is coming late but I wanted to thank you for the detailed updates pertaining to the AGM, as I was not able to attend this year due to extensive business travel in my industry field, its why I have not been that active on the board as of late, although my core position has not changed. Question - At the AGM was there anyone who asked or indicated was it possible or

[ark88]

Question - At the AGM was there anyone who asked or indicated was it possible or are they engaging with any large coal company in a possible joint venture in which part of the mine ownership could be sold for needed cash flow instead of another share dilution in case they don't get a sales contract........what is the back-up plan for them if sales don't happen in the short run - was

[cooper90]

Thanks Ark88!