Ann: Capital Raising Presentation, page-14

There are a few things about this project that surprise me, some good, some questionable.

However, if the gold price holds above AUD $2,500 as it is today, then based on their estimates, they should make an extra $30 million per year, or thereabouts, over the first 7 years. This is very approximate only, based on the DFS, but would be a good result if it comes to fruition.

I actually thought the economics could be a little better than they were, and believe there is scope for them to go back to the DFS and re-engineer it, for a better result.

There seems to be some costs hidden somewhere in the figures, which are a bit greater than I would have assumed, so I'm guessing there are some payments that may not be explicitly stated, and these could be for a number of things, including re-housing, taxes, cost of capital raising etc ... and some things I can't guess at.

With just a bit more exploration, I'd expect they should be easily able to push the production figures to over 100,000 ounces per year for at least the first 7 years.

The problem is how to grow the company if it is confined to PNG, and what the longer term plans are by the board. How about an eventual merger with KSN, or a takeover by St Barbara - I suppose there are a couple of options.

Gw