Ann: Quarterly Report December 2012 , page-4

Hi all,

Looking at the grades in the Read Zone of three figures g/t one may wonder if the company would be better off spending more time increasing the output and lowering costs at home.

The negligible gold content indicated in the Goldstone projects pales in to insignificance to my eyes when compared to the Read Zone. Given that if anything ever goes forward in west Africa a great deal of money will need to be found I wonder if the company would be better off sticking to its knitting here in Australia.

Surely with the combined people and expertise of the merged company we can find someone that understands that costs and expenditure must be well below the amount on the credit side of things to make for a profit producing enterprise. After all is that not what we are all here for in the fisrt place.

It’s not rocket science understanding basic business principles but with respect if grades of 10.1 to 268.7 g/t less exploration and other costs are to equal zero to the bottom line then you can forget about making money from decimal points of grades in the sand on the other side of the world!

IMHO the Goldstone holding should be put up for sale to someone with expertise in those types of large low grades and local experience.

Then get down to sorting out a few problems closer to home because with the kind of grades this company is showing at Henty $1,101.00 production cost are outrageously out of hand. Again with respect that kind of production cost would look just OK with grade 2-3 g/t more than a few of us out here have some mining knowledge.

Note to the management if you read these threads: You have a wonderful opportunity here to become a world class mid-tier Gold producer please I beg you get the costs under control and do not squander this opportunity!

Very best regards: Andy