Ann: PLACEMENT FINALISED, page-83

Saltwater .... I was going to just email you directly and respond to the questions/issues you have raised. Then I thought no, the questions you have raised, and comments you have made, are probably also in others minds and there may be some confusion as to what the company strategy is. So, I will post here and do my best to explain what is/has happened and where we go from here and- critically - to try and show you that we are not doing things in a knee jerk manner. Sorry, but you have asked for it and it is likely to be a long post to deal with all the comments so before I continue I will top my glass of cab sav up (a very nice 2014 Brands Coonawarra).

First, Riqueza remains the company's flagship project. It is drill ready with multiple Tier 1 targets and has ticked every exploration box up unto this point. A real "pain in the arse" that COVID and bureaucracy has not seen us get the drill permit to date but that has to be close. We will make no decision on what the best long term option for Riqueza is until we have done some decent drilling. You are absolutely correct, that was the main purpose of the CR in October last year and the reason (with Riqueza at the drill ready stage with multiple targets) shareholders stumped up so big in that CR. Until we do a decent amount of drilling nothing else will be considered in the way of future options for Riqueza. If our initial drilling is as successful as we all hope then it will seriously re-rate the company and, I suspect, make the project even more attractive for potential JV partners.

Second, East Tennant was never an after thought. It was a very deliberate decision to take ground in what we thought was an massively under explored area with massive potential. With the possible exception of Newcrest which picked up some ground literally one week ahead of us, Inca was the first early mover in this area (there is a story behind this and why that is the case and I am happy to share it with shareholders individually but not on the HC forum) and was very strategic in the ground it selected. One of the tenements was even secured before the the GA/NTGS major geophysical survey was undertaken. So it was no luck, or chance, that it turns out that the best NDI hole was on ground surrounded by one of Incas tenements. We were well ahead of the pack. The fact that the GA/NTGS work and subsequent NDI drilling has emphatically confirmed the massive IOCG potential of the region was no surprise to us as we pegged it in the strong belief that it was highly prospective for IOCG's.

Inca was always going to progress exploration at the Frewena projects in the East Tennant area as a priority. In fact, we completed a major aerial geophysics survey late last year, and this was not cheap so that is demonstration of the priority that we afford this area. All the subsequent news, such as MDI finding copper on ground next to our Frewena East area (and where MDI found it was actually ground that we had originally applied for as part of the Frewena East ground bid but in the ballot conducted by the NTGS we were not successful in getting all of what we wanted) and NDI drill results have not increased our interest in, or priority for, the Frewenas, merely confirmed it.

It was always our intention, once we finally get the results of the major AMAGRAD survey that was done last year on both Frewena Fable and Frewena Far East (where NDI drilled two holes), to progress to the next stage of exploration in the East Tennant area. However, whether we drill or do ground geophysics (to further narrow down drill targets as we did at Riqueza) will depend on these awaited AMAGRAD report results. I am personally, given my history with the Frewenas, hanging out for this report big time!! Depending on the report findings, we could have a number of exploration activities to proceed with next, including ground geophysical surveys or some drilling or a mix of both. So it is not just a "spur of the moment" decision to progress work at the Frewenas. It was always planned over the next 12 months. All that has happened, as a consequence of the CR that happened last week is that we are in a position to do it a little faster than was scheduled, based on a prudent spend of company cash.You must all remember that you don't get much change from a quarter of a million dollars for a major aerial survey and a decent drill program (say 5000 m) is going to cost you close to one million. So getting this extra $2.8 million really frees up our ability to do a number of these things and quickly.

Lastly, the majority the of the East Tennant ground (the Frewenas) have been officially granted and only some recent extensions to ground around Frewena East are still in the application stage.

I hope that explains things and reassures you that company is following a well thought out and methodical exploration program. All that has changed with the securing of the additional funds is that we can push a little faster than was originally planned. Nothing ad-hoc or piecemeal about our approach. As always if individual shareholders want to discuss anything in more detail, just drop me an email.

Cheers

Jonathan