director responds to my email abt todays ann..

Hi Guys,

Queried the director today via emailed and he has just replied. Make up your own mind.

My email to Keith was:

"Good Afternoon,

Having read the disappointing Hole 3 annoucement today on the ASX.The price has fallen 20% of yesterday's close.

What I would like to know is are you still confident of the resource underground? and with regards to drilling deeper at Hole 3, how long is that going to take approx? and will you start on Hole 4 asap or finish Hole 3 firstly?

Director response:

"Afternoon ****

The market reaction to our announcement was disappointing. Basically the announcement stated (in technical terms which we have to use) that the target may be deeper than we thought and may dip to the east not the west – the target is still there, we simply have not hit it yet. To put this in perspective, hole 3 is one of 11 holes we are drilling in this area, its early days and we won’t have a complete picture until the drilling program is completed in late March – even then our “picture” will only be a framework, which we can then build on.

We intend to push on with hole 3 to about 300m depth, if we haven’t hit it by then, it means that it is dipping away from the hole and it would be futile to continue as the hole and the target ultramafic unit would be sub-parallel. We will then move to the eastern side of the lake and drill the ultramafic from there.

Hope this answers your query.

Regards

K.W"

Ta,

Hu$h