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Gold/Mining/Energy : Steppe Gold (SPE:V)

SPE 15.24

+0.3%

Nov 7 4:00 PM EST

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To: David Riso who wrote (632)	2/18/1998 4:17:00 PM
From: John Menzies	Read Replies (1) of 1248

PROJECT FINANCING In short beside a vast amount of effort which you will never see - we did the basic resource development. We completed a rigorous resource definiition drilling program, metalluegy, engineering, mine design and environmental studies all to an international standard. This is the basic platform from which you can seek project finance - pretty sinple really. This has taken us 18 months of quite focused effort. We had the assistamnce also of Endeavour Financial who have been of great assistance in formatting our approach correctly - they have a clear understanding of not only the process but all what the banks require and alos on what basis they make their decisions - they have some very fixed rules in project cahflows and risk etc.

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