Executive Chairman, page-41

Hi Jimray,RE: Current SP, after waiting four and half years for some sustained positive movement, like most I am presently none the wiser as to when that milestone might actually occur. Maybe I am just dumber than most, but I still am unable to completely fathom how it has taken a supposedly expert management team 5 to 6 years to get a minow of a gold miner such as BSR is (50,000 + ounces a year) into production. In fact, even as I write this, our management team are still engaged in the site and production planning stage. This bewilderment is only enhanced knowing that most of the existing gravity fed processing plant and buildings that are constantly being featured existed on the Douta site and reported as such in a December 2013 report (5 1/2 years ago). The first feasbility study report issued by the BSR referring to the 4 Pits to be mined at Makabingui was on the 26th June 2014 (5 Years ago). Take a peek for yourselves on the BSR website, you will be surprised to see that the content of that report has not changed that much since then. On 27th January 2015 BSR reported that the plant upgrade case study undertaken by Mincore was 90% complete and locked in (4 years 4 months ago). They even provided a diagram of it. Of course BSR has paid for further reviews and advice from consultants since that time and for that matter still is.

I will admit I do not know much about gold mining per se, other than watching some Fox shows about gold miners in Alaska and the Yukon from time to time and what I have read. My thought on the matter at this time, is that BSR looks to fall somewhere between these Fox miners and the larger gold miners producing anything from 100,000 to 300,000 ounces per year. Sure it may have taken these larger miners 6 years or more to get into production and cost a lot more to get there given the size and nature of their set ups. BSR on the other hand is looking at producing a meager 50,000 ounces a year and as it was blatantly made aware to me at the time of purchasing my first shares (2014), most of the infrastructure is already there. Based on what I have gleaned from the last Annual report and last Quarterly report I believe BSR since inception has had cash available from capital raising and taxable profits of AUS$137 million and now has debt finance of a further AUS$19.27 million. That is AUS$156.27 million, a lot of money in anyone's language. Given the size of BSR's operations should it be further down the line with it than it presently is? I believe there is a good argument for that, but then again I might be just dumber than most. So I guess I will just have to continue to rely on what Management are willing to tell me in that regard. That we are on track and getting there.

Spoke to Mr Ian Riley last week, I had some questions regarding the last 2 quarterly reports. I would like to thank him for again taking the time to talk to me and answer my queries as he has always done in the past.

BSR will not be spending $AUS 2 Million on exploration this quarter, it will be spent on further development.

As it was in February that an order had been placed for the major equipment from China, I was a little confused with a statement made in the most recent report, stating equipment orders placed during the last quarter had a value in excess of US$ 1.5 million. From the case study prepared originally prepared by Mincore (Jan 2015), I believed this major equipment would have cost considerably more than this. It appears BSR’s plant upgrade may now have deviated from its original plan. Mining contractors maybe used to do some of the crushing. I have no idea, of exactly what equipment has been ordered or what last quarter’s development expenditure of AUS$2.34 Million was spent on.

I also questioned why BSR is reporting the full extent of the loan draw downs in it's accounts and not only that of it's 70% interest in its subsidiary MGO. Apparently, BSR reports it all due to the original agreement with WATIC or an addition to it. Just what capital or guarantees WATIC has to come up with in the future is purely speculative. As I see it, BSR takes on 100% of the costs and exposure and WATIC undertakes to pay us their 30% share later on, presumably from their profit share. Of course the Senegal Government has no exposure at all.

From my enquiries, it is my opinion now that a concise indicative timeline to production could still be a couple of months away, probably post AGM as management and their team are still working on it. I wonder if they have developed a Pert Chart for this part of the project as yet?

For those who are interested I believe these are the possible gold ounces to come from Pits 1 and 2 each 12 months from start of full production (95% recovery) 1st year - 68,722, 2nd year 52,955, 3rd year 32,328 = 154,005 ounces.

I appreciate the many positive comments and photos shared by posters here and for the most part I agree totally with the huge potential of this project. From my calculations based on reported expected g/t in each site and a 95% recovery rate it is likely that Pits 1 and 2 in the first 2.7 years will yield 154,005 ounces of gold. A possible revenue after Royalties but before costs of US$ 186.6 million over that time-frame. I will let you determine the actual costs as everyone appears to have their own idea as to what they will be per ounce. It is not surprising that they have decided to concentrate on Pits 1 and 2 when based on their info they are likely to only yield 17.100 ounces in total from Pits 3 and 4. As management have known about these 4 pits since at least 2013, it is bemusing that they did not make this decision earlier. Either way, there is no arguing the potential is real. No production I believe will occur until the leaching processing equipment (CIL) or whatever they have now chosen to achieve the best possible gold extraction rate has been delivered, added to the existing plant and commissioned. No one would start processing raw dirt, not being in the position of extracting the highest level of gold from the process. In my opinion, this is, if not one of the most critical events to occur before any processing commences. Is this equipment on its way from China or are they sourcing it locally?

Regarding the photos that have appeared here and in journals etc I am less than impressed. In fact, I find they have little effect in messaging BSR's real potential. I could be wrong, but I believe most of what is shown in these photos existed on the Douta site back in 2013.

Apart from the recent 2 photos of the perimeter road being constructed ready for fencing there has been little physical evidence made available of any actual development work taking place since May 2017. I believe the repairs to the dam wall have been completed. BSR recently acquired some software to conduct block modelling of Douta site. A site we have known about for 6 years and it is not the first report of this type requested and paid for by BSR during those years. Guess I finally just need to realise things do move a lot slower in Senegal and just go with the flow. Added to this is the slower it goes, the more chance the planned direction will change. It appears everything is in a constant state of flux.

Sadly, I will not be able to attend this years AGM as I have so many questions that I would like answered by Alex, but my work commitments make it impossible.I hope for everyone attending it does not turn out to be just another Dog and Pony Show with Alex talking about everything he has achieved since the last AGM and what he intends to achieve before the next. Hope he does not predict first gold production to be early 2020. We would all know what could mean.

For all those taking the time to attend I hope it turns out to be a lot more constructive and informative than that. There may even be some handouts, overheads, photos and drone videos showing improvements made to the site. Maybe, Andrew Goode will be there to give his insights as to what is really going on and where things are at. The expertise he brings to BSR re setting up and running a gold mine is well overdue. Shame his contract ends in June, but maybe it will be extended. No doubt Alex has a vast amount of experience in the mining sector. However, I am now getting the feeling it is more along the characteristics of a modern-day Indiana Jones – find it, quantify it, get out of it. In my opinion, his vast experience does not lie in the final stages of developing and production of a known resource and the market I feel has also realised this. BSR liquidity situation is also evidenced by the present SP. I do not know how he intends to turn this view around but for all our sake I hope he does so and quickly. Producing some gold would definitely be a good start.

All I am hoping is that whatever comes to light at this year's AGM, it gets BSR’s fortunes and SP moving in the right direction and not just for a day or two but on a constant upward grade. We all know the gold is there, we just need our Chairman to bring production to fruition. I have managed to achieve one item on my bucket list before passing over. Staying around to see the last season of Game of Thrones. Who knows witnessing the complete success of BSR as a profitable gold producer could be the next one I get to tick off.

GOOD LUCK TO ALL MY PREDICTION – THE FAIRYTALE ENDS 2019 (maybe early2020 Ha Ha)