Annual Report & Chairman address, page-34

Hi Lockitt, from what I can gather the biggest confusion was coming from then not clearly outlining what they were measuring, thus the last update where they provided a further update of it after we requested more info on how they calculated the "back calculated" gold grade. As it turned out they were measuring from a sub sample of what was processed, but the original report didn't provide the info. Updated report was much clearer.

So I am now comfortable with the calculation of "back calculated " gold grade, being the gold they would be expecting from digging up 1 tonne of tailings and then running through the entire process.

I just get a bit confused on where they are at operationally at the site when they talk about running it through the plant, are they at full Elzac yet or are they just running through normal process. Before Christmas they mentioned a 4 week time frame to modify the plant for the "special equipment" re ELzac but I don't recall any updates on this being completed. Thus my confusion as to where they are at and what level of processing will occur.

Anyway, with not being ASX listed we seem to be getting more frequent updates, so hopefully they can clarify where they are at in he next update.