Ann: Appendix 2A - Tenement acquisition, page-7

Hi Ikki,
Yes they did end up doing an initial drilling campaign on the Blue Moon prospect. We were very excited about it given the amazing nuggets that had been found in that area. But the results weren't at all exciting and were buried as part of another announcement a few months later. Still those Blue Moon nuggets must have come from somewhere and as DEG builds up a better understanding of the geology of gold-bearing structures in the region they may yet find the source rocks. Clearly they remain keen given this new announcement. In the initial agreement they Van Maris folks kept ownership of the alluvial sediments above the bedrock (to 3 m or 6 m?) but that isn't mentioned here, so maybe they have retired from that mining operation? Now we need a similar announcement regarding the Farno prospect to the east that we have in JV with NOVO these days. Maybe we can trade gravel rights in the Van Maris lease to NOVO in exchange for 100% of the bedrock in the Farno area?