email from the company (take 2)

Hi guys,

Please find below an email response which I received today from Mike Ralston.

I have obtained a written permission to post it on HC. A copy of that permission had been forwarded to the HC moderators.

Quote:

xxxxxxx,

There is a positive and a negative to this announcement.

On the negative, we all obviously wanted the big bonanza hole with great copper grades that we could shout about – especially since the geologists on the ground had been so positive in terms of what they spotted in the core.

Getting a 0.8% Cu equivalent is not the bonanza grade for sure, but it is the seam thickness and the copper dominant zone that is most important on Hole B4. These are both a first for us.

On the positive side, there are several factors I must point out:

1. We have now proven mineralisation across an area of nearly 3.5km, which is important as this could ultimately add a lot of tonnes over time, plus give us further opportunities to drill.

2. We have hit mineralisation on all holes drilled to date and almost all of it is > 0.8% Cu equivalent which is the KGHM cut off for mining.

3. We have found a copper dominant zone for the first time and this is very important as it does give us a target location to drill ahead. We know exactly where we want to drill ahead and we will focus in on this area in our next phase in Q4.

4. We have found 8.5m of Cu in this zone which is huge and can deliver lots of tonnage ahead if we get this into JORC. The average seam thickness at KGHM is around 1-2m so to find something much wider is very positive. If we find some decent copper grades near to this we could potentially add a lot by way of this hole.

Ultimately I need to add that we have only drilled three holes – let’s put this in perspective – I know projects that drill dozens of holes before they hit their first mineralisation, we did it in all three we have drilled and we now have a much better understanding of our tenement that is growing all the time. We know we have a lead-silver dominant zone to the east and we have now found a copper dominant zone to the west which is exciting as we know what KHGM have nearby.

Investors/shareholders have to give us time to drill this project out to find the pods with high grade, this is the nature of exploring. I said this after the “disappointment” following the first hole ASX-announcement where everyone not only expected us to hit mineralisation but also expected whopper results also. We can get there and provide lots of value in Bogdan but we would be incredibly lucky to hit the big bonanza hole in the first drill program – remember, the objective of this first drilling exercise was always to locate mineralisation (done) and provide enough information to have a more concentrated drilling programme ahead in an area we felt we could find something big (done).

I think we have delivered on what we set out to achieve – sure we would have been stoked to deliver a huge hole as well but where we are with Bogdan right now is fine and gives us plenty to work on ahead. I suspect that all of our expectations at Bogdan – ours included – may have got ahead of reality, and that is a step-by-step programme to build up our knowledge of the ground and thereafter value in that project.

Meantime we are lucky enough to have 2 other projects to focus on – firstly Monty and the wider Balkans strategy where we have a lot of activity at the moment, both exploration and corporate, which will be our focus for the next few months whilst we get permits at Bogdan. We are very fortunate to have multiple projects to mix and switch as we can and constantly deliver news flow and value. Very shortly the market will see the value of the Balkans region.

Secondly Togo, and we are making progress there despite what the market may see (or rather, is not seeing!) and again I remain confident on this that we will deliver this project and the value. Togo will have its day.

Ultimately Balamara is a speculative stock and we know we will have wins and losses over time – if we had three projects in our hands that each had $500M value today we would not be at 11c and $20M market cap... Stating the obvious I know but we are adding value everywhere and we will continue to do that, and as I have said all along there will come a time with each project where the penny will drop and the market will see this value and come rushing in. I suspect we are not far away on that so punters need to hang in there and be patient.


Thanks

Mike Ralston
Managing Director