Ann: Quarterly cash flow report, page-5

Hi Crash,

It's been known for a long time that there's plenty of gold in the Henty deposits, but unfortunately it's mainly been mined by companies with limited capital, or in certain cases by companies without the necessary management or operational skills to keep the mine and plant running safely and profitably for any length of time. Some companies have geos and engineers in their team who can find and mine gold successfully where others might fail. And of course, the tragic events at Henty many years ago cast a shadow over the mine which only the passage of time has started to erase.

The fluctuating gold price has also been a major factor in the past disappointments at Henty. Companies which might otherwise have thrived have been caught short without sufficient capital when the gold price has dropped, so they cut back on exploration, which eventually catches up with any gold miner not replacing mined ounces.

CYL have proven that they can find the gold, not just at Henty but also in the Victoria tenements. They are methodical and knowledgeable in the planning of their exploration, and that is reaping just rewards. They also appear to be good money managers, and they spend the cash where they are likely to get the best value.

Good times ahead, I think.

Cheers,

Mike