Ann: March 2017 Quarterly Activities Report, page-13

I will answer this with four points:

- Copper production was negatively impacted by damage to the Intermediate Leach Solution (ILS) pond, a planned shift to lower grade stockpiles as higher grade feed was depleted and the inability to achieve the designed operating performance in the tank leach circuit. 139,300 tonnes of ore were reclaimed from low grade ore stockpiles and stacked on the heap leach pads with an estimated total copper grade of 1.46% I say bring on the mining costs, they are only about 14c per lb, will significantly increase the grade of copper used.

- By the end of February, the tank leach circuit was achieving average throughput rates of approximately 19 tonnes per hour compared to the design of 50 tonnes per hour and availability of approximately 70% compared to the design of 90%. In March a number of modifications were made to the tank leach circuit and the manner in which it was being operated to improve performance and the circuit has now run for continuous 24 hour periods at throughput rates averaging 25 to 31 tonnes per hour. Lets assume that they did this mid march, only a fraction of the benefit was included in this quarterly as the quarterly ends 31 March.

- We are out of the wet season, good luck diluting the solution now.

- Power grid usage at 92%