Ann: Annual Report to Shareholders, page-37

Hi SJB and fellow shareholders,

I guess I must be the number 'two' that has raised concerns with Mark through emails.

I am currently waiting for Mark (or Chairman John) to respond to my questions to clarify what is going on at Cascavel. I have not had a response to my last email as he is overseas (in Brazil?) and returning today.

No internet in Brazil...? Hopefully there will be a useful Update shortly.

My questions included:
How many employees have we been paying in Cascavel for the last 6 months. Why are we still paying a Geologist $230,000 a year? What went wrong? Please release the two mining reports. What is the remuneration package for the new COO? Are you going to hire an actual Mining Operations Manager to run the mine? Where did we spend $8 million dollars in the second half of 2016?

17grams/ton gold seems to be considered 'low' grade... it is not. It is HIGH grade. Don't be fooled by excuses. If the BOD is unable to run a profitable mine with this grade of gold then they must go.

Why not get a 'bulk sample' done in the last 6 months? Where is our 'additional metallurgical test-work expected by late March'?

We don't need 'Additional mine development to commence in April'...

We don't need an additional '~80ktpa of to the processing plant'...

What we need is our current processing plant to have the minor problems sorted out and re-started so that we can generate some income and have some real miners running the place.

Any issues with the processing plant should have been sorted out prior to full production during the commissioning phase (that is why you have a commissioning phase...) - and from the great Updates we received from Mark (in October 2016) everything seemed to be going just dandy...

If the BOD don't read Hotcopper then it will be a big surprise for them when they get booted out at the AGM - perhaps Mr Finch does read HC and can warn them...