Ann: General Security Agreement, page-72

@mach8@karmalocust@Hateful8@Bellavena85@GuardianAngel8@mercsman@ASXO@Noobtrader1@Corgi

Some numbers and thoughts on future target for TSO. Added 20% dilution for 2021 and another 20% for 2022.

Resource size projection is based on the rate that we have expanded so far. Obviously this is dependent on the actual amount of gold in the ground however if we keep stepping out and hitting higher grades to the south these numbers don't seem too unreasonable. Drone Hill IP also looks juicy. More rigs will speed up the process and other targets have potential to add more ounces.

This is all under the incorrect assumption that we will continue drilling throughout the next two years at the same rate. Not sure how the company will proceed once the MRE is announced for Ternera. Will they try to firm up another target if the initial drills look good? and if so, will it be as aggressive as Ternera... Drilling will require money and further dilution so is it worth expanding more now or once we have some cashflow...

Ev/oz between 300-400 in the next few years sounds reasonable given the stage we will be at plus the likely increase in POG. DEG currently at ~650 Ev/oz.

If hole 51 is half decent it should bring us to ~1m oz on my model(1.2m oz without the 20% buffer).

Thoughts welcome.