Chairman's Address to the AGM

 
TIDMFND 
 
This  Annual  Meeting  covers  a  period  of  only  6 months  due to a change in 
reporting  date by the company  to fit in with  the Indonesian company reporting 
calendar.  It has  been a  very busy  period marked  by strong  progress towards 
Finders'  goal of  becoming a  highly profitable  copper producer from the Wetar 
copper  project.   Major  milestones  achieved  since  the  last AGM in November 
include: 
 
 ·  Wetar demonstration plant  achieved steady state  nameplate capacity of 5 tpd 
(1,800 tpa) of copper cathode. 598 tonnes of copper were produced January-April, 
and all cathode achieved LME A grade specification 
 ·  Final AMDAL  environmental permit  granted for  full scale  23,000 tpa staged 
expansion project 
 ·  Whim Creek 18,000 tpa  Cu SXEW plant  purchased, dismantled and containerized 
for transport 
 ·  Adopted low risk,  2 stage expansion strategy,  with Stage 1 expansion of the 
current  demonstration plant (EDP)  increased to 7,000 tpa  Cu cathode capacity, 
with Stage 2 increasing to 23,000 tpa. 
Outstanding  matters  required  to  commence  construction, include:   the final 
mining  and import  permits, development  finance for  the project, and detailed 
engineering.  These are all at  an advanced stage and  the company is poised for 
rapid growth in the months ahead. 
 
The  5tpd Cu Wetar demonstration  plant has proven  to be an invaluable learning 
tool,  in demonstrating the viability of heap  leaching the Wetar ore, providing 
operational  experience  not  available  through  column  testing  or laboratory 
studies,  and particularly in terms of  understanding the logistics of operating 
in  Wetar's remote environment.  This provides  an excellent platform from which 
to develop the project to full commercial scale. 
 
The  focus  on  the  demonstration  plant  is  now  on converting it from a test 
facility  to a reliable long term production  plant. This has involved adding an 
acid  neutralization circuit, upgrading of key  pumps, and re-stacking of two of 
the   four  test  heaps  to  improve  aeration  and  drainage.  Copper  leaching 
performance  has  been  in  line  with  initial  predictions, with heap 3 having 
achieved  67% copper recovery. Since  January the SXEW  circuit has consistently 
operated  at nameplate production levels.  Our  cathode is of very high quality, 
with  around  10ppm total  impurities  which  is  well  below  the  LME  Grade A 
specification limit of 65ppm total impurities. 
Development  work  is  now  focussed  on  detailed  engineering for the Stage 1 
Expanded  Demonstration Plant, which is to be increased to 7,000 tpa Cu capacity 
from  the originally  planned 5,000 tpa,  and most  efficiently dovetailing that 
development with the final expansion to 23,000 tpa copper capacity. Staffing for 
the  Stage 1 expansion program is complete.   Geoff Hiller, who completed the on 
time  and on budget  dismantling of the  Whim Creek plant  was been appointed as 
Project Manager for the Stage 1 EDP development. 
 
The  18,000 tpa copper Whim Creek SXEW  plant, purchased from Straits Resources, 
has been fully dismantled and containerized ready for shipment. On the logistics 
front,  we have recently concluded  a contract with Susi  Air, an Indonesian air 
charter company to provide services between Kupang and Kisar Island, the nearest 
airport  to the  project, which  effectively cuts  24 hours (each  way) from the 
travel times to the project. 
 
Final  timing for the  project expansion is  dependent on both  receipt of final 
permits and completion of financing for the project. Our current best projection 
is  that the  Stage 1 expansion  will take  up to  9 months from  permitting and 
financing  for  the  expansion.  It  is  planned to continue production from the 
existing demonstration plant throughout the construction period. 
 
With  the approval of  the project's environmental  development, operational and 
closure plan (AMDAL) by the Provincial Government  in early April, we are now in 
the  final stages of preparation  of the final mine  development permits for the 
full  scale Wetar mining project. All the technical sections of this application 
are  complete, and submission awaits completion of an amending agreement between 
the  Indonesian operating companies for the project to bring them into line with 
the  new Indonesian mining laws. This  process is currently in the documentation 
stage. 
 
As  previously reported,  we have  been in  discussion with  a number of banking 
groups regarding funding the expansion program, and are now reviewing draft term 
sheets  with a view to selecting a  preferred financier for the project over the 
next  few weeks. As I speak, a team from Behre Dolbear is on its way back from a 
site visit as an independent expert for the banks. 
 
On the exploration front the Board's aim has been to minimize expenditures prior 
to  completion of  funding of  the Wetar  development, while still maintaining a 
pipeline of projects to maintain future growth of the Company.  We are currently 
drilling  at the Ojolali gold-silver project in Sumatra, where we have completed 
15 holes  of  a  40 hole,  4000m reverse  circulation drilling program targeting 
additional  near surface gold and silver  resources. At Wetar, exploration focus 
is on the advanced Meron prospect, located within 2km of the main Wetar resource 
at  Kali Kuning,  and low  cost data  compilation and limited ground geophysical 
surveys  on copper-gold  tenements elsewhere  on the  island. This work is being 
funded  from the  proceeds from  the sale  of our  minority stake  in Geopacific 
Resources NL which was concluded during the first quarter of this year. 
 
Despite  the current uncertainties on world  financial markets, the copper price 
remains   strong,  with  many  forecasters  predicting  ongoing  strength.  Your 
Directors  believe we  have a  very robust  project at  Wetar, with  the revenue 
stream   from  the  existing  demonstration  plant  underpinning  the  company's 
finances. 
 
I  would like to thank all our staff and shareholders for their support over the 
trying period of the GFC. We are now primed and ready to go, and look forward to 
an exciting year of growth ahead. 
 
For further information please contact 
 
Finders Resources Ltd: 
 
Russell         Non-Executive Chairman     [phone] 
Fountain 
 
Chris Farmer    Managing Director          [e-mail] 
                                           <mailto:[e-mail]> 
 
Financial PR: 
 
Nick Elwes      College Hill (in the UK)   [phone] 
 
 RFC Corporate Finance Ltd - Nomad:: 
 
 Rob Adamson    Managing Director    [phone] 
 
 Stuart Laing   Executive Director   [phone] 
 
 
FinnCap - Finders' Broker for the AIM market: 
 
Mathew Robinson Corporate Finance Director [phone] 
 
 
 
Joe Lunn        Analyst                    [phone] 
 
 
 
 
Background on Finders Resources 
 
Finders,  listed on  AIM and  ASX, is  the operator  of the Wetar Copper Project 
(94%  and earning), and the Ojolali Gold-Silver Project (72% with option), both 
located in Indonesia. 
 
At the Wetar Project, as part of a definitive feasibility study, a demonstration 
SX-EW plant with 5t per day copper cathode capacity was commissioned in February 
2009 and  is permitted to process 100,000t of ore from the Kali Kuning deposit. 
The  demonstration  plant  is  producing  LME  Grade A copper cathode at planned 
rates.  The Company is targeting commercial production of 23,000 tonnes per year 
cathode by 2011, subject to final permitting and project funding. 
 
At  the Ojolali Project,  Finders controls what  it considers to  be a major new 
epithermal  gold  district,  and  has  been undertaking an extensive exploration 
program  comprising detailed drilling  to establish an  initial mining resource, 
supported  by  extensive  surface  geophysical  and geochemical surveys. Finders 
believe  that the  Ojolali project  has strong  potential to  generate cash flow 
through  open pit CIL/CIP  development of the  gold resource at  the Jambi Oxide 
gold deposit. 
 
For  further  information  on  results  previously  reported and a full resource 
statement      please     visit     our     website     www.findersresources.com 
<http://www.findersresources.com/>. 
 
 
Disclaimer 
 
This  announcement may or may  not contain certain "forward?looking statements". 
All  statements,  other  than  statements  of  historical  fact,  which  address 
activities, events or developments that Finders believes, expects or anticipates 
will or may occur in the future, are forward?looking statements. Forward?looking 
statements  are often, but  not always, identified  by the use  of words such as 
"seek",  "anticipate", "believe", "plan", "estimate", "targeting", "expect", and 
"intend"  and statements that an event or result "may", "will", "can", "should", 
"could",  or "might" occur  or be achieved  and other similar expressions. These 
forward?looking   statements   reflect   the   current   internal   projections, 
expectations  or beliefs of Finders based  on information currently available to 
Finders.  Statements  in  this  document  that  are  forward-looking and involve 
numerous  risks  and  uncertainties  that  could  cause actual results to differ 
materially  from expected results are based on the Company's current beliefs and 
assumptions  regarding a large number of  factors affecting its business. Actual 
results  may differ materially from expected  results. There can be no assurance 
that  (i) the Company  has correctly measured  or identified all  of the factors 
affecting  its business or the extent of  their likely impact, (ii) the publicly 
available  information  with  respect  to  these  factors on which the Company's 
analysis  is  based  is  complete  or  accurate, (iii) the Company's analysis is 
correct or (iv) the Company's strategy, which is based in part on this analysis, 
will  be successful.  Finders expressly  disclaims any  obligation to  update or 
revise any such forward?looking statements. 
 
 
 
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