Ann: Quarterly Activities Report , page-7

Treefeed,

Like you I am disappointed with the delays to date.

As per slide 4 of the 5 March presentation shareholders were advised that the Stage 2 “Low grade stockpile @ 0.075%” with 4 to 5 years production at 15,000mtu/m suggested Capex of $20Mil, that’s 3 times the production of the suggested 5,000MTU/M tailings for 2 years,

Unfortunately the Scoping study has not been releases so we don’t have the detail justification and detail paybacks etc. (Currently $54Mil has a 1.5 Year Payback)

All I am trying to do is to remind shareholders that this was originally a staged process and I can remember Dr John Bishop the Ex Ex CEO advising stage 2 & 3 could be self funding. (Maybe 5 years instead 2 years as the current directors are targeting)

Sorry if you feel I have misled Shareholders.