Ann: Pre-Quotation Disclosure, page-19

Would advise a high degree of caution in referring to Snowden's quoted exploration target for the Park's reef SJD.

Snowden wisely advise that the potential quantity and grade is "conceptual in nature" and that it is uncertain if further exploration will result in the determination of a Mineral Resource.

The Snowden Exploration Target is based on the following assumptions:
 Total strike length of 15 km
 Mineralisation extends to 200 m below surface, with the top 50 m within the oxide zone
 An average true thickness of 13 m
 An average bulk density of 2.0 t/m3 in the oxide zone and 3.0 t/m3 in the sulphide zone
 Between 25% and 50% of the mineralisation will be above an economic cut-off grade of
approximately 1 g/t Pt+Pd+Au and have reasonable prospects for eventual economic extraction
 The average, length-weighted grade of samples above 1.0 g/t Pt+Pd+Au is 1.77 g/t Pt+Pd+Au. (The elemental ratios of the PGE mineralisation at Parks Reef is approximately 50% Pt, 45% Pd and 5% Au, based on analysis of assay results from the drilling which intersects Parks Reef.)

Whilst I concur with the first four assumption points which deal with tonnage potential, the publicly-available drill assay data that I examined many years ago do not support Snowden's grade assumption for their exploration target as quoted in the prospectus. Not sure if this leaves Snowden exposed to a class action suit or not but it looks a bit tawdry?

The weighted average grade of bedrock samples over 25 bedrock drill intersections into the Park's Reef is only 1.1 g/t Pt+Pd+Au NOT 1.77 g/t (higher grade is restricted to a very small area of supergene-enriched mineralisation in the top 30m). Low grades are the main reason that no-one has attempted to mine the Parks Reef since its discovery in 1990...the rather-consistent bedrock Pt+Pd+Au grade indicated by historic drilling is roughly equivalent to 0.9 g/t Au-eq without factoring in recoveries!!!

I know they haven't even started drilling yet but the odds seem well and truly stacked against hitting one out of the Parks.

Cheers, P

PS Now that POD have raised 5.5M and handed 0.8M back to Patersons (15% of capital raised seems pricey?) and paid off debts of 0.6M and rents of 0.4M plus a bit of admin there doesn't seem to be much left for drilling?