Ann: LORRAINE AND ALOTTA DEPOSIT DRILLING UPDATE, page-13

This is the way i see it, they’ve flown VTEM (helicopter EM) which is the 3rd most accurate EM tool for drilling after ground EM and downhole EM which is the most accurate. The VTEM’s good for covering big areas cost effectively and gives you a general location of any massive sulphide conductors (if any) for drilling, you may not hit the massive on the first round but as long as you dont hit graphite or something that would make these targets a dud then it keeps the 6 targets in play.

After drilling you know have prime holes in the vicinity of the targets for DHEM, which should prove up a much more accurate target for round 2 drilling, you may have only missed them by 10m-50m, remembering that these things are very tricky. Thats where the DHEM will give you a much clearer idea on how far you are off from the target.

Ultimately it keeps the 6 targets in play, and nothing has really changed but time value on your money, however this time round (round 2 drilling) we will be coming off a much stronger fundamental base, having much more accurate DHEM targets to go off and having just entered a Nickel bull market on the back of the Indonesia raw ore export ban which should push the price of Nickel to $21k/tone, its all a process for discovery. Nickel names like MCR, WSA, IGO, and SGQ (to name a few) will charge on the back of the Indo export ban, opening the nickel sectors valuations right up and therefor making a huge price gap between explorers and ones with resource bases. Simply put, when explorers have a discovery now, then the SP appreciation will be much more aggressive as the sectors valuations have gone up substantially and the valuation gaps between explorers and producers have widened. Its the same thing that just happened in the gold sector. The nickel price will push on to $21k a tone and people will be looking for nickel exposure in producers and the more speculative money will flow into companies with good exploration potential and we have one of the best exploration potentials in the nickel sector on the ASX.

Its basically the same story with a stronger fundamental base, people will think that its game over if they do not hit anything, however the opposite is true, as long as they have not hit anything negative it only increases its exploration potential and you go again, this time with more confidence, a pullback in my view is a buying opportunity as long as we have not hit graphite or anything on these targets.

In my opinion Alotta is the prize and any whiff of a deposit existing below will put the Forestania Flying Fox analogy into play (look it up) and we will be off to the hottest race of the year. Alotta is the deposit that can significantly re-rate us as the punters know thats where the SGQ style grades are.

In regards to the register - the company updates the T20 at the beginning of every month on the website so theres no need to speculate, you can see exactly who’s been buying and selling. Will be very interesting to see where the selling’s coming from given the fact we’ve pulled back from 5c.

Look forward to the upcoming results, if we have hit it them then great, we’re off to the races, if we have not then ill be topping up on any panic weakness as i know the DHEM will provide a much clearer picture and we go again, this time in a heaving nickel bull market. Circa $5mil MC and plenty off cash for a few rounds off drilling, I’m happy to soak on any pullback, the Indonesian raw ore export ban news is a big game changer for the sector, looking forward to getting back out there asap for round 2.