Ann: Proceeding with the Development of Lorena Gold Project, page-34

The gold is to be processed at MKS ,s cost MAR will mine the raw product, MKs will ship and
process it to BARs in tasmania 70% of all the costs in the open cut mining will be bourne by
MKS , MAR will be responsible for mining it and crushing it . Estimate only the 57% will cost MKS
about 16% of the 57% . I think they get their 57% gross only on the open cut as soon as it is exhausted
they hand over the operation to MAR who are in talks with another group to develop the underground
should the resource prove worth it. Hopefully the long term forcast for gold is correct and we see it back at
about $1,500 per ounce. Cheers