Ann: Quarterly Report and Appendix 5B, page-19

TC

In my experience, the reason budgets are exceeded are due to in-hole issues, where hydrocarbons are present. This is certainly the case in this project. Issues surrounding gas influx are a nice problem to have.

Remember Ironbark?? Drilled problem free and under budget, but dry as a nasty one.

Sometimes perspective is important.

WE4 and 5 are back closer to the original discovery, so I am presuming the issues will be lessened.

As an aside, I have done some work on the core issues at WE3 and I understand a lot of them stem from the size of the well bore and the aim to extract high flow rates from the well, ultimately. A more cautious approach to this and a more conservative drill design could ease the pressure on budgets and time lines. Hopefully they will listen to Aztech in this case.

Cheers, AL