Equipment Sale, page-18

Hi All,

More greetings fro the Lobster Pot.

Had a chat with Lachlan this morning and he managed to make me feel a bit better about the HGO situation

He reiterated that they remain on track to meet the commitment to get the MRE out before the end of the quarter which was the stated goal in the last report. He gave a long winded technical explanation of the reason for the delay in the MRE which to be honest I would not be certain I could make a good fist of repeating for all of you! Suffice to say it sounds to me like they will need the full amount of time they allowed themselves in the quarterly. Not great but OK.

Lachlan said a couple of times that they are not deliberately going slow because of bad results or an inability to massage the numbers to tell the correct story. Instead Lachlan said that they need to ensure that they have the kind of quality in their report that will allow them to answer any questions put to them with confidence and with the kind of certainty that avoids financiers and JV partners needing to do further research using their own models etc

My summary of the conversation is that we all need to be well pleased with the current state of the copper price and is the main reason for being cheered up. Every little bit up from here helps. According to Lachlan the rising price is making their economics look better and better given their understanding of the ore body (You can thank your god, providence, your lucky stars, your lucky numbers, your crystal ball or whatever you have faith in for this cu price in my view - given the length of time this is taking!!)

As a result of this cu price we still have all options on the table that we have had since before the COVID.thing began

1. "Very advanced" negotiations with JV partners.
2. Extensive discussions with the state and federal govts about support given our past history of being a good corporate citizen.
3. A placement and CR to funding Phase 2 of the drilling and resource evaluation. Lachlan seemed genuinely confident that tapping the market would get us through final investment decision.

However, there is no denying that time is marching on and cash is burning.

At this stage I am resolving to keep my eye on that CU price as the climb up can only make our options more appealing.