Ann: Quarterly Report to 31 December 2015, page-13

"the Gods may finally be shining some light on PGI"

Could PGI be at the crossroads, maybe at last a change in direction ? There are now a number of good reasons to support this possibility:

1. As a result of the Isa mill reconfig we should see significant improvements to recovery rates for gold and silver (don’t forget silver is at about half where it should be) starting this month. This could quite possibly take production of Gold Equivalent oz’s to 12,000 or close and cash cost per oz below $700.
2. US gold prices have risen gradually by $65 over the last 3 weeks and with oil prices looking like they have finally bottomed there is one less reason for the gold price to drop from where it is now. The gold price and oil price generally tend to travel in the same direction.
3. With loan negotiations taking place with CAMIF this month hopefully we will see payments “comprehensively” restructured from 6 to 36 months, ie monthly instalments reduced to a size that the company can meet placing the company in a much more secure and acceptable position.