Leucadia National - Annual Meeting – May 13, 2008

IC = Ian Cumming
JS = Joe Steinberg

How do you protect against political risk in Argentina (referring to recent export taxes)?
IC: They’ve had a successful run in Argentina. A long time ago, we privatized the national insurance company, successfully got out before the dip. It’s never ending. It’s not politically correct, but the old joke is that Argentina is a country with wonderful natural resources, the problem is that it is full of Argentines. We don’t have a great answer, just pray. We paid a cheap enough price, think we will do just fine.

JS: There are two outcomes. The export taxes go away over time or it all blows up and the country slides off into the ocean.

Origins of Fortescue investment? How quickly will that ramp up? What do you think about China investing in Fortescue?

The deal came from Jefferies. We noodled on it, waited for awhile, then came back to look at it seriously. We worked on it for awhile. We have an old miner who works for us, guy used to run Kennecott Copper, we went over there and walked the site and took iron ore samples and it tested like they said it would.

Andrew Forrest is a difficult guy, hyperactive, visionary, great at what we does.
We laughed at our calculations when we did them, but we’re now at those numbers.

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