Ann: Change in substantial holding, page-32

As I do not (yet) hold any PEX shares I do not want to be too critical at this point.

Nevertheless, I would like to make a few remarks: Basically everything looks wonderful and the will to go into production sooner or later is certainly praiseworthy (I have heard this many times in the last 15 years and often it didn't run as smoothly as on a Power Point presentation). To produce it you need a production facility - but I understand that PEX doesn't have one. It costs A$ 100m minimum to set up one (tends to be more). In the current environment (rising gold and base metal prices) it will probably be difficult to get a bargain - that means you will have to pay well to get material, know-how and qualified workers.

I was one of the (more or less) lucky ones who bought Echo Resources in late 2018 and early 2019. They had a production facility that could have gone into production within a few months on a relatively small budget. Well, Northern Resources came and bought the thing. The SP was at 24 cents and then they bid 33 cents (a price that many shareholders considered too low). At least a premium of 37.5%.

So I see 3 possibilities for PMX - just off the top of my head:

a) You go through with it. There is a lot of dilution - which will weigh on the SP for years. Takes a lot of risk (by this I mean for the shareholders).

b) One drills further and tries to make the bride even more attractive. Then try your luck with a merger or sell everything. This will take some time.

c) The management might be tempted to find someone interested in buying right now (as it was with Echo Resources). You make a good deal and the caravan moves on. This is something that could be achieved within 6 months.

Since I don't know how attractive the resources of PEX are, I don't know if I should really be interested as a shareholder of another company (e.g. AMI) in buying PEX. I will keep an eye on the SP of PEX. If the same happens as with Echo - then the SP will fall and then someone will pay a premium on a lower share price. I will keep a close eye on that.

Anyhow, if the SP of PEX rises then I am happy for the PEX shareholders.