Ann: Trading Halt, page-22

Hi everyone.

Hi.

I wouldn't devote too much time on management wages, etc. because it will cloud your judgement on why they did this CR.

The only thing that disappoints me about this CR is it's timing -- why wasn't this done several months ago when the stock still had impetus? A CR @34 cents would have halved the dilution. I hope the timing of this CR, wasn't some sort of sweetie for the Chairman. Or if it was, I hope it pays off for the mum and dad investors down the track. ( I'm not implying anything sinister here).

My only positive thought is that new information has come to light recently, and inturn that has shifted management's priorities.

Any savvy operator must conduct different aspects of a project concurrently, rather than consecutively. This CR has all the hallmarks of an operator who wishes to fast track a project to the feasibility stage because of encouraging test work. Obviously we are still a long way from a scoping study/ feasibility study on Juruena. But my hunch is management has a very good grasp already on whether Juruena is viable or not. And if they believe that Juruena is viable, then they must fast track Juruena towards a scoping study ASAP. The money from Posse alone cannot do this. This CR could/should wipe off considerable lead up time for gettin' this thing into production (if a scoping study finds the project is viable). I'm more than happy to endure this CR if it means a decent chunk of lead up time can be taken off!

Also, my further hunch is management has two options on Borborema. Try and move Borborema to production (well duh!), or better still for management -- flog it off to the highest bidder.

All the best.