Ann: Wallbrook Exploration Target & Mineral Resource Estimate, page-219

Maybe I should have worded this a little differently. "You can't say that the BGD MRE is bogus purely on the cutoff grade NXM were forced to use."

JORC 2023 is well overdue since it was originally:

"Draft JORC 2022 review period Online Q1 2022
Final Draft Online Q2 2022"

How much does an MRE cost? I don't know, but it wouldn't be cheap, so let's just say $2M. With funds getting relatively low ($6M) due to drilling, I assume that NXM told the MRE consultants to prepare the MRE to meet JORC 2023 as a future cost saving measure. But NXM are only required by the ASX to comply with JORC 2012 at this time. And even if JORC 2023 comes in tomorrow, companies won't be forced to rush out and publish JORC 2023 MREs immediately, there'll be a grace period of x amount time for "in progreess" MREs to be completed, and a case of any future MREs complying with the new code. The same as picking up a Canadian project that is NI 43-101 compliant but not JORC 2012 compliant. You can publish it as long as you have a caveat statement attached.

NXM created this issue themselves, no point blaming a new code that isn't close to being finalised. NXM's attempt to save a few dollars has cost them >$30M in MC, doubt for future CRs, and who knows how much damage in reputation. And remember, it's not just AT at fault, there was a whole board who approved this path. There seemed to be a rushed response to an underwhelming MRE which resulted in delays to try and dress mutton up as lamb, which showed in the MRE presentation.

1. NXM should have told SHs that the MRE was going to be JORC 2023 compliant vs JORC 2012 to manage expectations. They didn't.

2. NXM could have completed a JORC 2012 MRE along side a JORC 2023 MRE so that SHs could see the difference. They didn't.

3. NXM could have provided pit designs/resource outlines used in JORC 2023 calculations. They didn't.

4. NXM could have provided financial metrics used in the JORC 2023 calculations to show potential new compliance issues. They didn't.

5. NXM could have provided a detailed plan going foward i.e. monetise pit A, expansion drilling pit B. They didn't.

6. NXM could have placed the company in a TH, released the MRE and then conducted a SH conference call Q & A session knowing the expected response to the MRE prior to lifting the TH. Potentially update the presso based on SH feedback prior to resumption of trading. They didn't.

Apart from an initial discovery hole, the first MRE is a prime CR opportunity to fund a company's future. NXM blew it.

Trust in management is key for explorers. NXM blew it.

And whilst they may find what they think is a "get out of jail free card" by lowering the cutoff grade, it will look ridiculously suspicious to future investors. Oh look, we drop the cutoff grade and all these ozs magically appeared. It won't be a good look, whether justified or not.

GLTAH