Ann: General Security Agreement, page-300

I'm very confident of a positive result out of all of this.

Why? because money talks and no one likes to lose money. If i was the vendor, why would i risk losing a negotiated cash/cash equivalent buyout of my 20% stake in the project and enter into a new agreement where if TSO develops the mine themselves and requires a capital outlay of $100 Mil + that I would have to stump up $30 Mil or more. Or have my ownership in the project diluted down practically nothing, say less then 0.5% and eventually nothing!

NO WAY would i agree unless i know that under the new arrangement that i would be better off and the Only way i would be better off is if there is an acquisition of the project and that TSO would agree to sell and not decide of build it themselves!

Zeff maintains his stance that we could take El Zorro into production to maintain some leverage, however, the way El Zorro is developing, there is a strong chance for a Mega District Size system 15Moz + and there is now way a junior could take this into production alone. GOR Gruyere is Big, but, Not that BIG and they developed Gruyere under a 50/50 JV.



I do think that when the company was formed they genuinely wanted to develop smaller scale mining operation at Tenera and that the Higher Grade Central Zone was going to be their payday. When the company was formed and pre-listing explorations commencing in 2017, the POG was no where near today's prices and the business case they put together would have been based on prices around that level. Who could have predicted what happened in late 2019-current date.

However, ALOT has changed! the asset is WAY BIGGER than what could have reasonably been expected and we all got lucky, nothing else.

Let's hope for the biggest MRE possible, we need to make each drill count! pray for the thickest intercepts we have yet to see.