Ann: Ceasing to be a substantial holder, page-7

I've been in a few situations like this before (unfortunately) so can share some thoughts.

From the AR ORS clearly has cash constraints and shareholders need to be realistic about how this will be overcome. In a tough market setting with a falling commodity price options are limited and predators abound.

At this stage, ORS could be compared to the game show "Deal or No Deal". Currently shareholders have a briefcase of which the contents are unknown - this represents the Maldon Underground mine. We are at the 1080 level and don't know whether we've got a profitable mine or not. I note that given the new JORC code ORS can no longer claim even an Inferred Resource for this mine (refer AR).

In keeping with the analogy ... periodically on the show the "bank" makes an offer to the contestant. In this case the offer is provided by the market. In time, due to the cash situation, this may also involve either an equity raising or a corporate transaction at a price/ on terms that shareholders will have to then consider - i.e. do shareholders think the bank offer or the briefcase (contents unknown) is worth more?

From past experience, however, the assets held by ORS will retain some value. Even if this is for the optionality of a higher POG some years down the track. Importantly ORS is currently debt free and this provides management with the ability to look at a greater scope of options. However, this window is closing quickly as cash reserves decline - predators know this and won't be doing current shareholders any favours.

At a market cap of c. $3.2m I believe that we are pretty much at the fire-sale price for the assets that ORS holds and it is unlikely that the SP will go lower unless the situation drastically alters for the worse.

What I wouldn't like to see happen is for ORS to become a "zombie" that exists just to pay management/ directors as what happened with BSM.

Personally I think 1.9c will be the floor for ORS regardless of outcomes from here on in.

Cheers
John