Rights Issue, page-2

I took up the last 3 in full. I haven't decided, and probably won't decide until next Friday about this one (haven't received the actual offer document yet either). Depending on what they trade at this week I am sure I am not alone in keeping in mind the possibility of selling some north of 13 and buying back @ 11.

The directors are in the mix either as sub-underwriters or with substantial entitlements. At the moment they are better placed than the rest of us to decide; that may change next week. In my view it is incumbent on the directors to tell us more, which perhaps is their intention.

1. They must have some idea of where the Como review is heading, in particular they must at least know within a range what the likely capex increase, and timeframe, will be. I hope they are planning to tell us before the 26th. Preferably they have worked to have the final report ready for this week.

2. Sprott are bound by the current funding agreement, but we need a new one, for a larger amount with more time before the first payment is due. There is big difference between announcing a revised funding agreement with Sprott and going back to square one to find a new lender, including the question of whether that would involve more equity funding. The directors will have some idea how those negotiations are proceeding, and they have had weeks to work on it. Next week is the preferred time to tell those of us in the cheap seats if we have a new deal or not, in my view.

3. I think they need to tell us what the deep diamond holes at Mertondale tell them - even if the assays are not in they will have looked at any structures intersected and have formed views about whether their models are going to hold up or need more work or more drilling. Ideally they submitted samples for assaying in time for results to be in this week.

4. The last Capex was for drilling, some of which was supposed to expand the reserve by converting inferred to indicated. Announcing drilling results is one thing, but at some point we need to know, quantitatively, how the expansion of the reserve is going. Again, the directors must have some clue - are we on track at least to 500 k ozs? Have we passed 400 k ozs yet?

I am hoping that there was a plan to coordinate the rights issue with the resolution of, and announcement of these matters. No one can plan for a drill to intersect mineralisation, of course, but the timing of rest of it is partly up to the directors and senior management. They must be aware that the last equity raising was followed by an unpleasant surprise, while the previous one coincided with drilling results that doubled the SP. If the preference is for the new shares to go mostly to existing holders, and it should be, then there should be a plan to provide some substantial news this week so we are not guessing.