Ann: Trading Halt, page-29

Lockitt, obviously you were holding a significant number of shares, and maybe it was sensible to reduce. However, there are good reasons to maintain an investment in Inca. True, Ross Brown is the only director to hold a significant number of shares, but there are only three of them, and then there is the new investor from the recent capital raising. Also true, the salaries are high for a small explorer. But on the positives, Inca looks as though there is good potential there at Chanape, but depth could be a problem. Inca have yet to find an economic porphyry, but so far the indications are positive. We all know that porphyry chasing is the ideal for any explorer, but they are high risk, high expense targets. On balance, weighing pros and cons I will hold on to my investment, but keep it on watch. If successful, then the rewards are big. At worst, the surface veins and breccia pipes could be low cost, modest reward targets or without value. Its a risk that I am prepared to take. I am holding.