bullabulling gold limited to list 2/3/12, page-8

Yeah Rich, I suppose RMS will also keep a close eye on Bullabulling Gold over the next year, especially as you say, with the winding down of Wattle Dam. I have owned RMS in the past. They have Mt Magnet coming on stream, but I believe the estimated cash operation cost at Mt Magnet will be quite high, perhaps above $900 per ounce. That is certainly getting up there when compared to prospective producers like KLM and PGI at about $300 per ounce.

I agree with you, at the moment Bullabulling Gold is looking like great value, especially if it lists around 20 cents, very cheap for a 2.6 million ounce gold resource, and the new drilling will push that above 3 million quite quickly.

Resolute's statement yesterday was quite significant, and perhaps directed at AZX/GGG. They are obviously keeping a close eye on Bullabulling, and yes, you are right, they were the previous owners and operators. As a result of AZX/GGG's new drilling, they now want back in, and have renewed tenement ML 15/552 for 21 years.

They used an AZX/GGG map to overlay their claim to ML 15/552, to show where the tenement boundary fell. This may have been a subtle message to AZX/GGG, because their tenement falls over some of Bacchus, Sphinx, Edwards and Medusa, which they said they are going to start drilling again for exploration.

Things are going to get interesting at Bullabulling, with both Resolute and AZX/GGG doing exploration drilling in the same old pits, because the tenement boundaries run through the middle of them. I can just see it, Resolute's rig at one end of the pit, and AZX/GGG's rig at the other, perhaps with boundaries pegs through the middle.

The other interesting item was that in GGG's presentation on Bullabulling on January 9, it looks like the red squares on their maps actually claim Resolute's ground. I am not sure if their maps were wrong, if this was a simple mistake, or if they actually think that tenement ML 15/552 is theirs.

I have sent Resolute's presentation to the MD's of AZX and GGG, together with the pertinent questions, asking if they need to make a statement to the market, but have had no reply, which is unusual for Malaihollo, who usually replies within a day, while Lawton of course never replies.

Cheers
Gw