Ann: Quarterly Activities Report - December 2012 , page-19

re: Ann: Quarterly Activities Report - Decemb... Correct. Full off-take agreement with Ansteel for magnetite.

However we have only shipped 1 load of magnetite (ie 55,000 to 60,000 tonnes).

We have mined the magnetite (over 1 million tonnes). However it is not yet processed through the concentrator, thus cannot be shipped yet, therefore no sale.

We would not receive money until the ore is on a ship, or even at port in China (with payment due 30, 60, 90 or whatever the agreement is days later). I am unsure of the exact payment terms. But note GBG has no problem selling its ore!! Ansteel is obligated to purchase it all, which was the point of this venture anyway - a secure supply of high quality magnetite for its still mills.