Ann: Extension of Etango PFS Following Recent Fav, page-20

re: Ann: Extension of Etango PFS Following Re... Hamsam

'Tis not an easy question to answer or explain. Suffice to say that you take on it is WAAAAY too simplistic. The PFS is not a set of number that you can just add to, "factor in to", any new changes near the end.

The PFS is the main deal here and is done by independent experts. It will present to management, all the options going forward toward production. Based on the PFS, management must put their cajones on the table, & "sign off", or approve one of the options presented by Coffey.

Once they decide which way to go. Then the DFS does the final technical details on THAT option with a view to sourcing and pricing every item required, hand balling that onto the BFS, which then works up the financial figures & financing options. BMN have said that these two will be done concurrently.

At this point they WONT be able to change a thing! I have seen companies get to this point & realise they took the wrong direction ... they have then had to virtually start the entire Feasibility studies from scratch.

Understand, that management are actually third parties in this process, they are not really allowed to influence or direct Coffey. Coffey are legally responsible to provide a workable project at the end, and management have to "sign off" on it. They too are legally responsible for that decision, and hence must be ABSOLUTELY sure that they have crossed every T, & dotted every I.

If they dont, if they choose the wrong option, or if they miscalculate some other aspect. The bankers who stump up hundreds of million of $$$, and shareholders alike, will legally be able to call Coffey & the directors to task.

Len Jubber wont take any shortcuts on this ... the project is too big, the stakes are too high, and the resource of such world significance, that this must be gotten right.

Unfortunately we can blame the GFC, and the severe pressure put on the price of uranium for this. They really have to find the most economic route to production. Yes we all think uranium will go higher, so do BMN management. But "thinking" and guessing is not enough ... they have to be able to prove that this project work even at low uranium prices.

I still reckon they will end up getting the long-term average OPEX down to the low $20's ... the extra studies are there to get the best out of Etango, to deliver the most profitable project to present to the bankers.

We need to let Coffey do that for us ... a few extra months is a cheap price to pay for success!