Canaccord GCY update (March 3rd), page-4

Thanks Spec, it is an encouraging report. I also struggle to find a "more undervalued gold producer", although OBM comes close (still early days there though).

I've followed your posts over the journey with GCY, and I've noted your caution when considering the re-listing / re-capitalisation etc. I've held shares here myself since the early days, and I've also been very disappointing with how it has all unfolded. I feel like I should have seen the signs early on, but that is probably only due to the wisdom of hindsight. My gut feel is that there was a lot of "selective reporting" going on at the time, so I cut myself some slack.

I have embraced the "new" GCY and I've been buying when I can for two key reasons;

- Firstly, the appointment of Richard Hay. I remember thinking at the time that it was a good appointment, he seemed to have experience in the industry that they would benefit from. But then I began to notice brief comments in GCY reports that struck me as odd. They referred to Richard as kind of a breath of fresh air, and noted that he kept suggesting improvements that they hadn't thought of before. I began to wonder what they had been doing up to that point? How is it that they hadn't thought of these things before? As I have watched the story unfold the only conclusion that I can reach is that the failure of GCY has come down to a resource that needed to be managed well to be maximised, but the management at the time were just not up to the task. So, I took great comfort in the removal of the previous leadership, and the fact that they held on to Richard Hay.

- Secondly, the potential for there to be quality deposits nearby. I believe that the exploration upside for GCY is significant. As you rightly point out Glenburgh is an excellent resource to have, whatever they decide to do with it will add value. However, I am more interested to see how Tanqueray unfolds. I remember when they first announced the high grade hits from Tanqueray. It seemed to me to be an act of desperation when things went pear shaped. The close proximity drilling that followed was a desperate attempt to give shareholders hope and stop the slide in the share price. Obviously it failed, but it got me wondering what else might be nearby. Then DEG happened (which I am incredibly grateful for) and I began to understand that nowadays the better deposits seem to be hidden under cover, but they can be identified if you know what you are looking for. Tanqueray seems to have significant transported cover and clay down to around 50m to 80m. In the mid feb report they began to talk about a mineralised zone or trend that seems to extend about 500m east to west. This is what I have been hoping for. I have long suspected that what they found in mid-2018 was part of something bigger. However, it would not be properly identified without a comprehensive program and some deeper drilling. It has been a long journey, but perhaps the time has come to find out. I also suspect there will be other similar finds in the area.

I understand that GCY still has to prove itself, there is a lot of negative history here. However, I am very optimistic. It seems to me that the seeds have been sown for a significant turn-around story to unfold. However, to be honest, I am also hoping that it doesn't take off just yet as I would still like to buy more.

Spec, I really appreciate your input here (and in other threads), your honesty and willingness to share your insight with others is appreciated very much.

Kind regards.