Ann: Lithium - option exercised, drilling to commence-PSC.AX, page-67

Slow and steady progress.

The drill tip will do the talking with the lithium.

I am very keen to hear where our gold is up to. First gold was last quarter (from tailings) This quarter they are mining and stockpiling new ore, and presumably treating it at the Farvic toll mill.

We're unlikely to be cash flow positive from the gold in Q2, but I would like to see steady progress towards the 20,000oz production target they have set themselves by mid 2017.

If they can reach 20,000oz annual production, at conservative gold prices of USD1,200 and all in sustaining cash costs of 900, that would be earnings of USD 4.2M per annum (after taking into account 70% stake).

A JORC over the gold would be fantastic, so we can put a value to the gold in-situ...perhaps ($40 per oz resource in the ground)