Ann: Cerro de Chaga-1 Update, page-49

Agree. This is an exploration company, risks abound.

This announcement is not that bad. There are plenty of worse announcements from blue chip or mid cap companies stating revised earnings or missed milestones etc which arrive out of the blue and have severely contradicted earlier forecasts, completely destroying market confidence. Eg Yowie, Retail Food Group (what a saga that one is), Slater and Gordon, Dick Smith, the list goes on. For an explorer this is not terrible.

The biggest tell is that fact buyers supported price at 0.01. Huge absorption at this previous support level by a fund or two. Why? Because the probability of price going north once PRL sort this issue out (and it looks very resolvable) is far higher than PRL ceasing to be a going concern, at this stage.

Sure the selling has also been heavy, but the bids at 0.01 ain't budging. Good buying now. I know this does not make it easier for long term holders hoping for a significant return on investment, but picking an explorer that will turn into a worthy producer is always difficult.