Correspondence with DACIAN

Reply to Gtrain 005

Mail to L. Junk - May 2020 :

I am a little surprised at the evolution of DACIAN in recent months, but perhaps you will provide answers to my questions.

1. Why did you issue at a price of 30 cents, or a discount of about 80% on the last price of AU $ 1.40 ?A price of 60 cents would have made it possible to refinance the company with less dilution and would have better protected the interests of minority shareholders.

2. Based on the number of current shares, the price of DACIAN should be 56 cts, but does not exceed 45 cts, despite volumes of approximately 10 million titles per day since the success of the issue and a price gold at the highest.

L. Junk reply May 19th 2020 :

"I agree with you, I was also a bit surprised on how much I had to do upon taking on the role to get the company back on track, it was very different to what I expected. But the company is now in much better shape after recalculating a more robust estimate of the resources and reserves, making a tough decision on the future of Westralia underground, creating a solid mine plan and raising equity to fund it.

I along with you was disappointed with the 30c issue price at the time, but the truth is it was looking like much lower than that and we actually got it up to 30c which was better than it could have been. The reality is that we had no choice on timing to complete the equity raise. We had a large debt repayment we could not meet, had little available cash in the bank and were close to running out so the equity raise could not have been delayed any longer, even by a week. It was unfortunate timing for us that this was right during COVID-19 when the markets were seeing unprecedented levels of volatility and cash withdrawing from the equity markets and the appetite for a recapitalisation was extremely low. So to achieve the result of raising the required funds to save the company was a great result even if we had to take a higher level of dilution than initially intended.

On the current share price, there has been a large loss of faith in the company that I am setting out to repair and this will take some time. We need to deliver into our low priced hedges until June and then we can start making some cashflow. Once this happens I am expecting our share price to trade higher, but we can’t lose sight of the current reality of the COVID-19 pandemic that is moving the market in all directions so I would ask for a little patience during this time."

Mail to L. Junk - December 5th 2021

Since your reply from May 2020, DACIAN has been in free fall and you keep diluting (twice !) the stock. This is becoming dramatic for shareholders, especially the historical shareholders who have already fallen victim to R. Williams.

Presumably we'll hit 15 cents soon, and do you have any arguments left to lower my morale and have a good Christmas ?

Until now, I have no response from L. Junk...