Ann: Positive Pre-Feasibility Study, page-26

It almost feels as if this PFS was a race against time in some ways...

Due to the prepayment agreement with Yahua, we needed to show that Grants supports a NPV of greater than US$20 million, and need to make a decision to mine by 31/12/2019.

Today’s PFS shows that an NPV of US$40 million is possible via DSO, and that an NPV of US$105 million is possible for 5% concentrate. So not only does today’s PFS satisfy Yahuas NPV requirements, but it also make the case that the decision to mine should go ahead.

But I wonder: what would the PFS have been like if BP33 was ready in time and could have been factored into it..? Would we have chosen the 5% concentrate route then..?

The feasibility study goes ahead upon a positive PFS. Unfortunately BP33 wasn’t ready to be incorporated into the PFS, so IMO we have put out a positive PFS, simultaneously satisfying Yahuas NPV requirements and making a case that a decision to mine should go ahead, all so that we can bring out our feasibility study, which BP33 WILL be ready for and incorporated into, which IMO will produce a great NPV for 6% concentrate, and include flotation infrastructure

Come the feasibility study, I think we will either choose 6% concentrate or DSO. Had BP33 been ready for PFS, and had metallurgical studies been further along, I think we would have chosen 6% concentrate from the get go.

All IMO and perhaps a bit of xfiles thimking

GLTAH