Ann: Quarterly Activities and Cashflow Report, page-180

After my own DD and speaking on a couple of occasions in the last 2 weeks to the management team, I had 5 questions I needed clarification on.

The management have not left people wondering. They outlined what they are doing. I sought more specific and in depth clarification and it was forthcoming. They were frank and open on certain matters which was refreshing.

Based on the breakdown of information they gave me, they are not down to 3 weeks cash flow and the reasoning behind it was sound. I at first assumed that. That is why I actually did something about it and actually searched for the answers and avoided heresay and speculation.

This is still a spec stock and there is inherent risk in all spec stocks. However, the strategy that was discussed with me is interesting and is not something that I had contemplated.

But it certainly is one that may fast track production should the final negotiations bare fruit. Also, there are several avenues of other funding that were outlined to me if the current negotiations should, however unlikely, not eventuate into agreement.

till a spec and I am calling hold at this stage.