Ann: Conquest to Progress Towards Production at S, page-36

re: Ann: Conquest to Progress Towards Product... Read through the JV announcement from July 2007.

• Conquest retains all the value it has created out of its Mt Carlton project (including the Silver Hill deposit), where all of its delineated resources currently reside.
• Conquest participates in the upside of any major discovery by GFA in the surrounding regional JV tenements area.
• GFA is required to drill 150,000 metres within three years in order to earn 51% of the wider regional JV tenements area, excluding the Mt Carlton project . This essentially means GFA bears all the exploration
risk.
• Under the terms of the Joint Venture Agreement GFA is initially obligated to spend a minimum of $5m within the first 12 months, a condition which, without satisfying the drilling requirement, gives GFA no entitlements whatsoever.
• Exploration by GFA in the Regional Joint Venture allows Conquest to realise the potential upside in the JV project sooner rather than later.
• The Regional Joint Venture allows Conquest to pursue a dual path of becoming a producer, via development of the Mt Carlton project,whilst retaining the ability to aggressively explore the regional JV tenements area.
• Gold Fields brings with it substantial resources, not only in a financial sense but also in the form of expert knowledge, labour and equipment.
• After meeting the drilling requirement (150,000 metres) GFA will have the option to purchase 50% of Conquest’s excluded area (Silver Hill & Mt Carlton). GFA will be required to pay Conquest in cash an amount based on the independently determined Net Present Value at that time.
That NPV will reflect the results of Conquest’s continuing aggressive exploration and development program at the excluded area.
• After meeting the drilling requirement (150,000 metres) GFA will have the option to purchase a further 24% of the wider regional tenements area. GFA will be required to pay Conquest in cash an amount based on an independently determined Net Present Value at that time.

As you can see they have to cough up with a substantial amount of money if they want into the silver Hill project. Currently $150 million and they get half.

They then have to come up with more funds if they wish to pick up more of the JV area, based on that NPV, this could be anything. They then have 75% of the JV area.

CQT SP of a dollar, 220 million shares they don't own.$20 or so million in the bank.
They need to come up with $200 million and they get everything including 100% of Silver Hill.

The longer they wait the greater the risk of having to come up with even more funds as further resources are discovered.