Ann: Phillips River Resource Upgrade , page-4

Grades are very nice for open pit economics - no worries about that.

Can't believe the market this am - again strong buying followed by sell off back down to 7.2...crazy.

Nearly an extra 100,000oz "in the bank" -

94,000oz X A$2,237 = A$210m x 85% yield = A$178m

allow conservative C1 cost of A$600 per oz (project C1 A$440 (includes copper etc credits)

94,000oz x A$600 = $56m

Total value to income after mining costs therefore is approx A$122m.

Now this ugrade is virtually straight to the bottom line income assuming other non mining/production overheads are increase only slightly by the mining of the extra tonnage/resourse (economics of scale).

so market reaction to an extra $100m plus potential profit
(equates to over 30 cents per share) is unbeleivable.

Have I done the sums right? Can someone please offer an explanation??????