Ann: Quarterly Activities Report September 2013 , page-4

re: Ann: Quarterly Activities Report Septembe... Cash burn still far too high considering the low level of development activity.

When you exclude the 2July receipt we are down $2.4 mm for the quarter. Even if you also exclude the currency adjustment that is $ 1.8mm.

The 9% increase in production is just not good enough, we still need another 50% just to comfortably tread water.

It really surprises me that our reserves remained certified. As they are being produced at negative value to shareholders perhaps we should have hoped the auditors would have wiped them all out.

I will still hold for now, with the main hope being that something good comes of Phoenix, whether drilling success or market exuberance on a good rumour, or whatever. Either way I will be eyeing a better exit point.

EL