Decisions: Before or After, page-129

Rob I understand your focus on having Contract/s but I don't think they are needed. The June 2017 Qrtrly told us that they had been consulting with industry (See below) & the plan to lease Screening Machine & their plan to produce specific sizes of Aggregate, was a direct result of Industry Consultation.

Contracts are unlikeIy I think, at least until NAGs has a reasonable stockpile of product and Industry can check out the quality. Even then Contracts wouldn't necessarily be needed, as they could just operate on a gate price with supply on a demand basis.

Contracts would just as likely lock NAGs into guaranteeing a price & minimum monthly supply that may not be in NAGs best interest. If the quality is good & demand is robust, it would probably work better to supply at an agreed price but with no lock in contracts. That way NAGs is in control.

I think NAGs management have done their research and know demand is strong and at the right price they will have no problem selling product. Remembering NAGs production costs are minimal - the drilling, blasting, crushing and stockpiling are all done and paid for (via the previous gold mining process).

I see flexibility as being in NAGs best interests if demand at the right price is strong. NAGs product will be at "the right price" because they can produce at a much lower unit cost than competitors.

It depends whether you see NAGs value offer as strong or weak. I think it will be very strong and sales will be robust, which is the word used in the Qrtrly.

Thats my take on it but make your own decisions.

From the June 2017 Qrtrly"

Nagambie Resources has consulted with relevant industry participants and developed a business plan that
incorporates:
1. Dry screening all of the mine tailings, separating out all the aggregates;
2. Multi-deck screening all the aggregates, incorporating water rinse sprays; and
3. Producing three sizes of aggregates (7mm, 10mm and 14mm) for sale separately to concrete
manufacturers in regional Victoria and Melbourne.
The market for concrete aggregates of consistent quality and reliable supply is strong, both in regional
Victoria and Melbourne, because of the accelerated infrastructure work being carried out in Melbourne. The
economics of the business plan, incorporating current trucking costs, is robust.