Ann: Adriatic Metals Exceptional Pre Feasibility Study Vares, page-29

As usual with Australian companies, they do not have to publish their full feasibility study report as TSX listed companies are obliged to. They can therefore select what they disclose and leave the reader in the dark about certain assumptions made. No life of mine production schedule, no metallurgical recoveries in particular years, no concentrate qualities, no details on marketing terms assumed. No explanation why the idea of separating the copper from the Cu-Pb-Ag bulk concentrate was dropped. Now the Cu content in the concentrate is absolutely crappy and should have low payability. Yet, Table 3c indicates all Cu will be paid for. Yes, sure.

It is impossible to determine what assumptions were made for treatment and refining charges, transport and shipping. At US$52.1 per tonne milled it is the highest cost item.

Mining cost rates are a mixture of underground and open pit cost, impossible to know exactly what rates are assumed for Rupice and Veovaca.

In conclusion, ADT's attitude is you just have to accept as gospel what they put out. No wonder the market places a big discount on their NPV8 value.

I got into this share because I believe in the project. However, the way management informs the market is very poor. By now I know when it takes time, be it drill results or the disclosure of study results, then a disappointment is due. Given the fact that very little has been disclosed about drill results since the last set on 1 September tells me enough.