questions for the agm, page-21

Kentwang

You wrote...

##The following is one question I will be putting (to give an idea of the substance needed to solicit a reply).

On 11 July 2011 in the June Quarter Production Update announcement it was stated “The company delivered 18,102 ounces of gold for the Quarter, in line with its market guidance. It is targeting 100,000oz in Calender 2011”.

Subsequently, on 28 October in the September Quarterly Activities report it was stated “The decision was therefore taken to divert some capital development funds from our newly opened mines at Coolgardie into securing the Crescent acquisition. This has meant that whilst production at Coolgardie was at record levels, the ramp up of the new mines in this Quarter was not accelerated at full pace. We therefore expect the Coolgardie operations to produce around 85,000oz in this calendar year and move to a production run rate of 100,000oz in the December Quarter.”

In announcing diversion of funding for the Crescent acquisition in the June Quarterly Activities Report (29 July 2011) no mention was made on it impacting on the ramp up of new mines, or Calender 2011 gold production guidance.

My question is why FML management in providing funding to CRE in June 2011, failed to appreciate and accordingly notify the market that this would impact on the ramp up of new mines and gold production guidance for the remainder of 2011?##

Great Question mate...I actually asked the very same of Jon G and it was the one part of our conversation where I came away disappointed...

His response was that the company never specified that the often-stated CY 2011 Prod target of 100.000oz was to come wholly from Coolgardie Operations!!

As I wrote in my earlier post, very time poor at present and need to check back on previous anns...If anyone is able to find details please post dates and details and I'll follow up on them.

Our talk was starting to unravel at that point and I decided to remain diplomatic and move on to some different questions (from which I gathered quite a bit of helpful info)...Hope to update soon.

Couchy