Ann: Quarterly Report, page-14

Hey Bud,

MAW rose another 10% to close at $CAN 0.48 which is $AUS 0.50. Values NAG's 9,500,000 shares at $4,750,000.

Qtly said SPARK asked NAG for a price for managing PASS and NAG provided them with one. Strange behaviour from a consortium. Asking a company who, Punter says, won't get one trailer load of PASS to provide a quote. SPARK are wasting time and money providing the specifications to NAG and want to waste NAG's time and money responding. Unless Punter has the story slightly wrong.

Unless they asked NAG for a quote just so they could go and wave the quote in the face of other world's best practice PASS management companies, you know like............mmmm, I'm having trouble bringing those names to mind.

As for the bacterial leaching of gold fines. Environmentally friendly, reclaims the gold and cleans up and stabilises the aggregate for sale. WIN WIN WIN.

The HLP now looks like a great asset and a long term earner down the track. If any other miners nearby have gold fines maybe NAG can come to the party and offer HLP rental.

Cheers

Nanu