Ann: Outstanding Assay Results at Ohio Creek, page-52

Quick update on Guyagold balance sheet and earnings. They deduct royalties during earnings calculation and then do not add back royalties to net earnings during cashflow calculation. That means royalties are paid, an amount of cash flowing from Guygold to the government in Guyana. In the 2016 report, p. 74 they calculate an expected tax expense at 26.5% rate (federal + provincial). Seems to be a Canadian rate. The earnings statement (p. 51) uses that figure to calculate net earnings. But cashflow statement (p. 53) adds back that figure to cashflow, meaning it is just an accounting figure for the time being. That means Guyana Goldfields, despite making profits, is not paying any tax at all. Could mean royalties are indeed deductible from taxes. So no tax in Guyana, double taxation agreement between Canada and Guyana cannot count any Guyanese tax against Canadian tax liabilities and so they have to pay tax in Canada once they repatriate. Therefore a deferred tax liability needs to be created. Warrants further investigation.