gemfields ruby auction, page-221

Wow...interesting notes.

(j) (Decision to mine payment) The Company will be required to pay the current licence holder US$1,500,000 following the successful completion of the bulk sampling program which leads to the decision by the Company to start full-scale mining; and

(k) (Decision not to proceed) Should the Company decide not to proceed with the project it agrees to sell its interest in JV Co to the Holder for MZM10 (~0.02 cents) and write off all shareholder loans.

Basically, the company have 18 months to bulk sample 150,000 tons.

And after the successful completion of the bulk sampling program which leads to the decision by the Company to start full-scale mining.

The Company is required to pay the current licence holder of US $1.5M. Note, its not 18 months to pay!!! Its 18 months to complete bulk sampling.

If not proceed with the project, it must sell at 0.02 cents and write off all shareholder loans.

All on Page 4

What Davisite said is basically correct