Ann: Craiggiemore and West Laverton Drilling Resu, page-2

re: Ann: Craiggiemore and West Laverton Drill... The drilling results are excellent and overseas investors will be happy to know the drilling results and its potential and CRE may settle with better value for its new to be finalised convertible note and hopefully in medium term (one or two quarters time), this higher grade resources can be used for milling. However in the short term, CRE needs to do the followings:

* To identify the problem of high cash cost of A$1397/oz in the last quarter and causing the large negative cashflow of A$4.39m. It is expected this quarter cash cost of production will be as high as the last quarter (same pits will be used as per last quarter)

* To finalise the below mentioned capital raisings as mentioned in the half yearly auditor report
ASAP due to last quarter large negative cashflow.

[a] the marketing of a $15,000,000 convertible note issue, the indicative terms of which are interest at 9% per annum, 24 month term, convertible at 30 cents per share. The final terms and conditions of the convertible note issue are still subject to negotiation;

[b] the negotiation of a $7,000,000 finance facility. It is currently proposed that the facility will have a maturity date of 15 June 2010 and that interest will be charged at 12% per annum. The final terms and conditions of the facility are still subject to negotiation.


As always, DYOR