Ann: Quarterly Activities Report , page-21

Ultimatum,

Minimum requirement for DFS?
1) in terms of time frame
A very detailed level of (insider) knowledge is required to determine the required time frame as there are many factors that affect how long it will take to complete a DFS and even then it would only be a rough estimate. Eg. The type of mining they decide on, complexity of the mining process, the number of options they have, the size of the project, whether the DFS will be initially just covering Hansen as a standalone operation or whether it will include Taylor Ranch. Many parts of the DFS are also outsourced to external consultants and specialists and how long they end up taking to complete their respective parts will also not be known by even the company themselves. How long the DFS takes will also depend on how much detail has been included in the PFS as the DFS is really a more detailed version of the PFS. It is however not unusual for a DFS to take more than a year. As an example, BMN commenced their DFS in Dec 09. They announced some estimated numbers from the DFS in Dec 10 but only finalised it in Sept 11. PEN's DFS has also taken more than a year and a final DFS for the Lance project is still ongoing.

2) money required
- Once again, it would depend on how complex the project is.

3) JORC levels
- The main determinant on whether BLR has sufficient JORC resource resource to proceed to a DFS will depend on the PFS. The PFS may determine that an underground mine may be required which may require the company to identify a larger resource to obtain the necessary economies of scale to proceed. An underground mine would need a higher cut-off and that is why BLR provides two JORC resources numbers with different cut-offs. Per the quarterly, Open pit JORC is 91mlbs at cut-off of 250ppm and underground JORC is 44mlbs at a cut-off of 750ppm. This is of course a very simplified way of looking at it. The PFS may determine that it could be a combination of open-pit first followed by underground mining and this would again modify the minimum JORC required for a feasible project. IMO, the company would not have initiated a PFS unless they believed that they had sufficient JORC to proceed.

Is it possible for BLR to get the date from the old feasibiities studies and update them and make the old reserves - current?
The JORC that BLR has reported to date is the only resource that is acceptable under the new JORC code standards. Any other historical data that they have will need to be reverified to comply with JORC standards.

So again, the PFS is key to getting a clearer picture.