Ann: Interim Financial Report - 30 June 2018, page-5

When I talked to XAM's BDM maybe a year ago. He said he was pushing hard to ask them to declare a plan to form a starter open pit at Stockwork Hill.

Now management are saying that the PEA will be that but to take in White Hill as well & surrounds. The size an throughput tonnage may well make it look reasonable. Also due to the mechanics of pit design re- wall effects if the hole is big enough it means it can be targeted a lot deeper into the Stockwork Hill and probably White Hill cores. (With the option to run a decline out of the bottom of the pit). Being a mining engineer Mr Bornite you are probably across all of this and I understand why you wouldn't speculate. However, I'm prepared to do so on HC given Mr Stewart is alluding to some of it the announcement albeit saying they are doing the numbers (and his BDM talked some of that up).