Ann: Trading Halt, page-38

CR has been detailed in the AFR this morning, it's $19m at 46c (with 41.3 million shares expected). I'm very positive on this:

• Fully expect that there was a large 'exploration & evaluation' expense paid shortly after 30 September for the previous quarter's drilling. In my opinion, $7.2m in the bank would have reduced shortly after 30 Sept;

• 30,000m drill program is going to cost ~$4.5m and the company wants to keep rigs spinning into the new year = further costs. Management and staff can see the company's momentum and want to continue pumping out drilling results (there will be no pause like in Jan - Apr 2021) - it would be much more detrimental to pause drilling for a month due to a lack of cash;

• I had a chat with a few brokers over the last few weeks and Hartleys at the AGM. They are beating down the door and the company has received unsolicited calls with offers to throw money at them (I've heard a broker comment that Templar is 'Karari on steroids' - no idea if this broker has the geological training to back this up). Management continues prudent approach and isn't significantly diluting the register;

• Company's market cap is now at a stage where some of the larger funds / investors etc. have had their risk factors ticked off and can get in;

• Exploration team is very confident on the coming results and their understanding of the geology - they just need to get the drills in the ground. Andy has been saying this in presentations for years, the deposits are constrained only by the extent of Nexus drilling to date. This CR allows us to ramp up hard and find out just how big this is;

• Company has typically seen multiples of growth following CR. 4.5 cent raise in June 2020 led to a 15c raise in November 2020 and we're now raising at 46 cents - I expect similar results from this raise. Raising now also means that the discount is small - if we were desperate for cash, there would have been potential to push the price down;

• Any short term gain received if NXM hadn't raised now will (in my opinion) be dwarfed by the next 12 months;

• Historically ~75% of NXM's cash is pumped into exploration and it has lead to low cost ounces;

• Possibility of a major cornerstone investor coming on board to take this forward;

• Whilst the gold price appears to be breaking out, needs confirmation on the weekly. We are still early in this gold bull market and it still has a few years to run. I expect massive returns for those who are patient but heaps of bumps along the way.

NXM looks poised to benefit from these tailwinds.