Ann: Capital Raising and Update, page-3

I liked what I saw from the Zurich presentation the MD gave it had alot of interesting information in it, the main points I took away were.

Looking to first develop a high grade core of 250 g/t.

Initial high grade core resource to be defined early next year.

Zero strip on the high grade core.

Targeting a $10 Australian all in cost.

2 rigs currently on site and 5 rigs on site early next year.

Targeting a total 300Moz resource.

Indications of a large gold/copper source under bowdens.

Now those points are all good in theory, but how achievable are they thats the question, the most important thing moving forward is can they define a high grade core of 250 g/t, if they can the project has life, if they can't it's a dead project to me.

Second is size I want to see that high grade core come in at 40Moz high grade core thats big enough to justify starting production.

As you can see silver is $22 they can get a $10 production cost, that $12 profit x 40 mill ounces, 5 Moz a year production x 8 year initial mine life thats $60 mill a year free cash flow, so 40Moz @ 250 g/t ag that makes sense.

He said 2017 early Q1 that information will come out, if it's good the project is good, but if they can't deliver on this high grade core the project to me is basically worthless until silver prices hit $30.

Now AZS has become a copper explorer again the best silver play on the asx is IVR mainly case it's only a $15mill cap and it's very under rated for what it has.