Ann: Investor Presentation - RRS Stars Conference December 2017, page-11

Averaging down is a two edged sword. Sometimes it benefits you and sometimes you cut yourself even more. If the downward trend reverse and goes up - obviously you did yourself a big favor. However if the trend continues downward, than you have dig a bigger grave for yourself. Just make sure you have plenty of bullet/capital to back yourself up if you are planning to average down. Reason for this is because you don't want to be selling for a double lost when you can't sustain the downward trend momentum.

Best strategy is to invest only a small portion first and than average up or down as you see fit. Lower reward but lowers your risks as well. All depends on your risk tolerance as well as how much capital you have to start with. Also when you are invested in the speculative end of the market (example: KAI), always good to take some profit along the way, especially when the stock has multi bag several times over. However if the momentum is going strong, sometimes you want to try to ride it longer to get the best yield.

It really depends if you are a short term/mid term or mid term/long term investor. Investors like Sprott probably won't be selling out until this gets into production (if ever) and will make a killing if it does. Small fries normally like to trade in and out and end up losing more money than they would have made if they had held onto their shares. Reason for that is you're paying taxes on your profits and sometimes buying in high on the hype (fear of missing out) and selling low (under pressure).

In saying that, now is probably not the best time to sell. You don't want to short change yourself and find yourself rushing to buy back what you sold for cheap. Just my opinion and I could be wrong. But it gives me comfort to know we have plenty of cash [$9 mil] to fund our operations for the medium term. Also $7 mil out of those $9 mil was raised at 5.5c (10% above current share price) albeit attached with a free exercise-able 10c option. Have a look out there and you won't find many speculative company with such strong funds. Rest assured, a capital raise will not happen anytime soon.