Ann: Placement of Rights Shortfall, page-10

AVQ set out to raise $6.9M. They raised $1.25M back in March via a placement, then $247K on 5 May, via the Rights Issue and now a further $1M. Collectively AVQ raised $2.5M i.e. less than half of what they set out to raise. In the last 6 months AVQ has spent $4.19M i.e. $700K per month. A month ago AVQ had $1.39M in the bank and therefore of those funds only about $700K would be left as of today, if you use their average burn rate. Therefore, after the most recent raising of $1M from InCoR, AVQ's cash position would be approximately $1.7M, which gives AVQ about 2.5 months worth of cash at their average burn rate. The reason InCoR put in a $1M as without that $1M AVQ would have run out of cash and InCoR would have lost their investment. AVQ and InCoR have bought 2 months of time to figure out how to fund the business on a more sustainable basis and to cut costs. They do not have enough money to do any real work on the project or advance it. However, they might now be able to at least finish off the San Jorge Mineral Resource which is months over due. It will be interesting to see if in the next month if AVQ does release a Mineral Resource for San Jorge??