Ann: Drilling of Strong EM Conductors at Mt Alexander, page-143

Hi All, let me say that I am not a geologist but I have invested in mineral exploration companies for a few years. Still a novice when it comes to the more technical details.

I have read many SGQ posts (again) today and it has unsettled my view of SGQ a little. I have only invested in SGQ for a few months, so comments from some long term investors worries me a little. I know they are on very good ground and have some outstanding assays results up to now.

The key concerns that that have been raised by people on here today seem to be:
1. SGQ exploration approach over several years seems to be disjointed - little structure and company bouncing around from prospect to prospect
2. Despite some very good high grade nickel, copper, PGM plus other drilling assays, SGQ has not defined a resource model as yet.
3. Exploration-to-mining strategy and timeframe hasn't been defined and communicated. Investors are tired of the endless drilling programs.
4. Communication & Presentation Style - it is difficult to find a concise description of the investment case for SGQ. Everyone has to go digging.
5. It sounds like previous & current exploration on high Siemens EM conductors hasn't met the expectation set by SGQ pre drilling

So, I had a look at the profiles of the Board of Director, the Technical Mgt Team and their advisors this evening.

BOARD OF DIREcTORS

John Prineas B.Ec LL.B F Fin (Executive Chairman)

John is a founding shareholder and director of the Company. He has over 25 years experience in the banking and legal sectors, including a period as the head of a financial institution in Australia. He commenced his career as a lawyer at Allen, Allen & Hemsley, gaining extensive experience in commercial transactions and corporate advice in both Australia and Asia-Pacific. In 1994, he joined Dresdner Bank AG in Sydney and over the next 10 years occupied the roles of General Counsel, Chief Operating Officer and Country Head with a focus on project and acquisition finance for resources and infrastructure projects as well as associated capital markets and treasury products, including commodities trading. John has a diverse range of high level experience in finance, mining and corporate governance.

John Dawson (Non-Executive Director)

Mr Dawson has over 30 years’ experience in the finance and mining sectors where he occupied very senior roles with global investment banks including Goldman Sachs and Dresdner Kleinwort Wasserstein.

At Goldman Sachs, Mr Dawson was a Managing Director of FICC (Fixed Income, Currency and Commodities) for Australia. At Dresdner Kleinwort Wasserstein, Mr Dawson was Global Head of Commodities as well as the Country Head for Australia.

Sarah Shipway B.Com, CA (Non Executive Director)

Sarah is a Chartered Accountant with extensive experience in advising on ASX company listings, financial reporting, corporate planning and equity and debt funding.

Sarah has a Bachelor of Commerce from the Murdoch University and is a member of the Institute of Chartered Accountants.

She was appointed Non‐Executive Director on 11 June 2015 and has been Company Secretary of the Company since 22 March 2012.


TECNICAL MANAGEMENT TEAM

Dave O'NEILL – Project Manager

Dave has more than 20 years’ experience as a geologist in the mining industry including senior roles with WMC Resources, BHP and Western Areas.

Dave has particular expertise in nickel sulphide exploration in Western Australia with extensive experience in nickel sulphide deposits at Forrestania, Kambalda and the Agnew-Wiluna Belt.During his term at BHP and Western Areas respectively, Dave managed and supervised exploration programmes at the Mt Alexander Project for each of those companies.

Charles WILKINSON – Technical Consultant, MAusIMM

Charles has over 32 years’ experience as a geologist in the mining industry. He worked with WMC Resources Limited for 16 years, holding various senior exploration and operational positions including Exploration Manager - Nickel Exploration Australia, and Geology Manager Hill 50 Gold Mine.

During his time with WMC Resources, Charles was instrumental in the discovery of the Argo gold mine at Kambalda and managed exploration programmes during the discovery of the West Musgrave Nebo and Babel deposits.

After five years as the initial Managing Director of Northern Star Resources Ltd, Charles joined Western Areas Limited in 2008 as General Manager Exploration.

During his 9 years at Western Areas, that company developed the Spotted Quoll deposit, significantly increased its resource inventory and became Australia’s No. 1 independent nickel sulphide producer.

Benjamin POLLARD – Consultant Geologist, MAusIMM, AWASM

Ben is a WA School of Mines (WASM) graduate with over 20 years’ experience as a geologist in the mining industry. He has held positions with mining companies such as Barrick Gold, Placer Dome, Goldfields and Harmony Gold.

Over the last 10 years, Ben has operated as a principal consultant to numerous mining groups ranging from global mining houses to small ASX listed exploration companies.

Ben’s experience spans several different commodities, including gold, nickel and cobalt. He has post graduate qualifications in geo statistics and is skilled across the whole spectrum of geological applications from exploration to production and reconciliation.


ADVISORS
Newexco Services Pty Ltd

Our geophysical consultants, with a leading reputation in nickel sulphide exploration. Newexco were advisers on the discovery of the Nova-Bollinger deposit for Sirius Resources NL (ASX: SIR) and the Spotted Quoll and Flying Fox deposits for Western Areas Limited (ASX: WSA).


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My Observations:
* BoD is made up of Legal, Finance Markets & Accounting people. Should have a Geologist on the Board IMHO.
* Understand JohnP enthusiasm, but he is not a geologist. He needs a Geologist to attend presentations with him at times.
* Company needs an Operations Manager or similar that can set up the web site, prepare slide packs and reports etc. Better than now.
* Who in their BoD and Tech Mgt Team is setting the exploration strategy, approach and timeline? Unclear.
* SGQ seems to have a decent team of geo / technical people involved to make the right decisions, interpret assay results & advise.

I am fairly new to SGQ, so happy for my comments to be corrected by those with more details knowledge and experience with the company and its management team.

I am hopeful that the near term surveys and targeted drilling will lead SGQ to its 5th discovery. Good Luck All.