Ann: High Grade Copper Gold Assays Extend Nugent Mineralisation, page-65

Hi VYR

I’m interested in your comment that you’re thinking we won’t do nearly as well out of HGO as you originally thought.

My expectations around HGO, and the amount of time it may take before we see a return on our investment, took a dive in January following the release of the results for the December quarter. I subsequently reduced my shareholding, because it seemed to me that another capital raising was inevitable, which has obviously since happened.

I still have a reasonable stake in HGO, which I am comfortable will eventually bear fruit, although I have no clear view as to when that will be. I also remain confident in the board generally and in Bob specifically, and the strategy they are pursuing. The company now seems to be on a far more even keel, with a lot more upside than downside, assuming the copper price does not misbehave.

Having said all that, I’m glad I invested the proceeds from the HGO shares I sold in to other companies which are experiencing strong appreciation in their share price.