gm recording, page-2

Good on the shareholders who queried the Penumbra financing setup and the cash balance swings on a quarterly basis. The discussion starting in the 41st minute is VERY telling - PL sounded pretty stressed out about it all, and also noted that the situation "wasn't pretty". Well he's not wrong there.

This next 6 weeks will be interesting. Conti need to pull $8M out of somewhere to buy the balance of Mashala, and it was flagged in the meeting that they will do this by one or more of the following:

1. Selling non-core assets such as Mooifontein. Very unlikely that this alone will raise the required $8M funds in my opinion.

2. Selling a partial interest in the Botswana assets to an interested entity.

3. Selling a partial interest in the company's South African producing assets. This is a bit of a doozy. Selling interest in the assets that they are trying to buy interest in? Perhaps they will try and hand the 16% outstanding to a 3rd party and in turn hand $8M to the Mashala holders.

4. Finalising Vanmag. I'll believe it when I see it.

5. A heavily discounted RI to shareholders. PL noted how this would be the easiest and quickest solution, but also the ugliest.

6. Not paying up by September 30, and being sued by Mashala shareholders for the $8M. This would buy the company some time if they couldn't achieve one of the above, but nevertheless, they would still need to sought out the funds before too long.

This is their chance to do the right thing for once and seal a sale that is advantageous for the company. Option 2 via a JV or option 3 via a sale seems like the most likely and best outcome possible. This is where they have failed so many times before, finalising transactions. It's all going to come to a head quite soon and their reputation is now well and truly on the line.