Ann: Metallurgical Test-Work Results - Aucu Gold Deposit, page-88

Hi Gentlemen one and all,

Sadly I was indeed sin-binned for a few days; however, rumours of my demise have been greatly exaggerated. So much for free speech.

I have read the many comments from people here that say much the same things as I do in regard to this company and I tried at length the other day to explain to Mike from WCN that we need to look at commencing some kind of mining activity instead of constant low price CR’s. However, I had no success at all it was like banging my head against a brick wall. The day started bad enough as I had a doctor literally sticking needles into my right eye to move a misplaced fitted lens one would think after that a day could only get better; however, please believe me in this instance id definitely did not!!!

Mike made it abundantly clear that I was not a director of WCN just as well as we could not afford to employ a smart one as well as the current two. So probably the best way to share what happened at the meeting is to enclose the E-mail I sent to Mike in this post. He has since replied and thanked me for the E-mail and has he has not disputed any of my points I feel there should be no problem posting the message.

I just hope that others here apply pressure to the current management because I really don’t think this company will endure another four years of CR’s and an annual cash burn of $4M for so little true exploration work. If this next CR is to also include the cost of another full time geologist and the cost of a London listing you will probably understand my unbridled frustration with both Todd and Mike.

If after reading my missive people wish to share their views and thoughts I will be happy to discuss them further:

Cheers and very best regards: Andy

The E-Mail as sent: 1^st June 2017

Hi Mike and Todd,

Mike many thanks for taking the time to meet with me yesterday and once again please accept my apologies for being late as I mentioned I had an eye operation the previous day and understood my 31^st May appointment was a simple post-op check. I was not expecting to require another small operation and anaesthetic prior to our meeting, as I was possibly not firing on all cylinders I would like to clarify the points we went over. Please bear with me if I jump around a little with this communique as my eye still remains somewhat painful and I’m taking painkillers.

I had mentioned that sometime in 2015 I was of the understanding that the company was making positive moves to put a small but expandable plant in place on the Aucu project. The aim being to start to generate some cash flow and ease the need for constant CR’s. I do recall having conversations with Todd on this matter and I even started to obtain some pricing for such a plant; however, Todd told me at the time that a plant could be purchased relatively cheaply directly out of China. As you confirmed yesterday there is not even a remote chance of commencing any kind of productive mining at the Aucu site prior to 2019-20 due to the amount of work required before the company can even consider making a mining licence application in the K.R.

Whether or not these thoughts of early mining were only in my imagination stirred on by Todd’s enthusiasm or if we are to call a spade a spade by his outright misleading comments I guess it’s academic. As you have now cleared up the point once and for all and there has never been any plan (or talk) for the company to move into production prior to the time indicated by Todd in his latest video 2019-20.

Whilst I accept the reality of the situation I must admit that being misled in this way is extremely disappointing. At that point I recall I asked if you thought the market would stand another 3-4 years of constant CR’s and I admit I was surprised by your optimism when you replied Yes!

We also discussed my thoughts on reducing the director’s fees until such time as the company can afford to make these payments from revenue instead of shareholder funds being diverted away from exploration activities. I pointed out my private business model on this where all my company costs are paid first and my own reward coming from any remaining funds and how I thought this was the ultimate performance based reward system.

I agree the ASX company listed way of syphoning of the top the money for director’s salaries and conditions prior to any business expenditure certainly makes my private business model look like a mugs game! I actually find my personal business model of reward for performance a great deal more honest; however, perhaps it’s best if we just agree to disagree of points of honesty and integrity and a rewards based payments system.

So it appears that the current director’s salaries and conditions are to remain in place for the moment. Between that a new geologist salary and the cost of the London listing it could be shaping up for a challenging year.

Talking about performance we also discussed the 50% reduction in the 2016 Aucu drilling program I reiterate these targets are set by the director’s in full knowledge of the terrain and the ability of the local drilling contractor’s. That holes were drilled in the wrong place in some instances due to a lack of adequate site supervision and other problems is hardly the fault of me or other shareholders.

On the positive side at least we currently have the 302,000 ounce JORC resource, had the 2016 drilling program not turned out the 50% shambles it was perhaps this resource up-grade may have landed closer to those numbers Todd was throwing about during his various presentations. Being enthusiastic is one thing; however, I believe this may be the reason the positive 302K result has been interpreted by the market as so disappointing.

For the moment let’s put the 2016 drilling campaign where it belongs in history and move to the 2017 Aucu drilling program. As you said the dozer is currently on site but the drills can’t get on the site due to the local weather. I noticed you have not given a specific target for this year’s drilling program I guess that’s one way to avoid another target miss. As you said once the drill rigs arrive and start work on the Aucu site you will announce this.

As I understood from our conversation unless the company can find a JV partner it’s unlikely that any company funds will be applied to any of the WA prospects; however, you said you have had some contact with possible interested parties.

You also mentioned that the company is looking at appointing another geologist to take the pressure off Todd and that he /she will spend more time on the Aucu site and hopefully avoid further drilling errors. I think it will be good to have a qualified person on site during the 2017drilling campaign; hopefully this will ensure what little of the shareholder funds are used for actual exploration activities is not wasted drilling incorrect placed holes!

However; I think for this 2017 campaign Todd should accept a salary reduction from $300K down to $200K at least to fund another $100K for the new geologist if you have any real wish to elevate the current level of company credibility.

I believe I have been a solid supporter of the company since I first came on board; however, unfortunately for many reasons you can no longer rely on my ongoing support.

Possibly at some point in the future someone or some group may make some money from the various WCN mineral properties; however, I doubt it will be by the current management and shareholders.

I also agree with your comment that the WCN story has gone very stale here in Australia and possibly a London listing will help the situation although with the current lacklustre management attitude I have my doubts; however, I wish you both well with your many future CR’s and the maintaining of your wonderful shareholder sponsored life styles!

Cheers and very best regards: Andy