Ann: Maslins Drilling Update, page-29

So, another way to think about this and I put teasers in my comments:

1. wildcat Vs Dir hole

So to Oz it’s wildcat to paint the big regional picture for their many other targets. Pig picture confirmation of geophysical theory.

For IVR it’s a Dir Hole, basically sunk or swim for the small listed company.

For Oz they would drill the hole anyway but by paying IVR to do it they also get ownership of some of IVR basically as a free bonus.

2. To drill deeper on the daughter hole or not?

This goes to whether holes 2 and 3 get drilled AND to SP outcomes from this hole. It also goes to the Q of economic mining depth.

Again for Oz they want to correlate their regional geological and then geophysics crystal ball theory. Irrelevant what they hit they want it done.

For IVR they want a great mineral result irrelevant of mining potential, Dir Hole.

If they get any sniff it can be spun positive. If they spend twice the budget dollars on hole 1 then don’t do hole 3.

A daughter hole wedged off at 650m is way cheaper than demon and drill that 650m at hole 2. Just look at the talk about having to rehab the hole 1 track.

Also in the end Oz cash is in IVR bank and IVR have the call.

Finally anything over 500m is basically uneconomic for both Surf and UG unless it’s over 10% metal.