Ann: Lulo Diamonds Sell for A$2.1 Million, page-103

Let's clear up a few things here regarding funding going forward. There is a lot of crap that gets dribbled on here. I am a LOM supporter and believe in the huge potential of this block of dirt.

The company isn't fully funded for kimberlite exploration. There are 2 seperate operating licences, alluvial mining licence and kimberlite exploration licence.

The funds which sit in the JV account are for use under the alluvial mining licence only. These funds can't be directed to kimberlite exploration. There is absolutely no point in repatriating funds to Aust when you are scaling up production, you simply leek cash. Any sensible person running a business would keep a cash buffer there for the lean months, which will happen when mining alluvials, understand that and accept it. Kimberlite exploration is funded out of the Aust company account. The latest quarterly clearly states the expected expenditure for this quarter. This doesn't include a funded drilling campaign - these commited funds for the quarter are for pitting and evaluation and equipment ect.

There are many ways in which they can fund the drilling campaign when they have defined drilling locations on 259. Major shareholder has indicated a commitment of up to another $5+m - or he could convert his options in support of the company. He is clearly not a seller.

Let it unfold, it's a special block of dirt!

Happy to be corrected.