Ann: Exploration Update - Drilling to Resume this Month, page-18

The term oversold is a very complex one and depends on how you are valuing the asset and what you are comparing it too. Are we talking global, across sectors/markets peers etc.

In terms of gold it appears there is a bit of a “struggle” going on in the USA and the so called trade war. I have always been bullish gold but unfortunately the market has been able to kick the proverbial can down the road for decades. My analysis is long term support will hold and the Aussie dollar GP will be sitting around 1700 by Xmas if not earlier and higher. I will punt on those companies (smaller producers/developers) that I believe will get a big kick from such an event.

Aaj is a “just” another minnow explorer in the ocean and along with its peers is at present struggling to get traction . Established Aussie gold miners are (or should be) making very good money and are beginning to look over priced but the flow down to the next levels is just not occurring.

So I believe the negative sentiment to explorers the current GP concerns (which I think are false) are weighing down aaj as well as its peers.

I like minnow/juniors because that’s where I believe you can make the best returns whether it is trading the speculation or through actual discovery (very rare). At present I feel aaj and it’s peers have more pain to go through. In the case of aaj I just don’t see them making a discovery the size of what is being touted. To me the evidence todate is that they are not even close. But I was a geologist and hey I might be wrong and change my mind!