Ann: PNG Project Sale, page-75

HI DDBB, any exploration in PNG is not cheap. We dug more than a few trenches. Trench work goes back 3 years. We haven't even received the last trench results. Take a look at the financial reports for the last 4 years. At $2M I doubt we are getting our money back and we just announced a Maiden JORC of 128koz. Remember this was limited to the trench, soil, and only 44 drill holes at Saki only. This hasn't taken in Kimono, the 120 vein or Taula. And there are still around another 12 sites to be drilled and tested and sites not even located. Yes, we estimated 1Moz but that was never going to come up on the maiden JORC. No maiden JORC is big unless they have done extensive drilling. Yes, we were always going to do one of two things. Do a deal for royalties for the resource or sell. If we are giving it away for $2M then I want to see royalties as well. $100 per oz sounds reasonable to me. That will add a minimum of $10M to FNT or if we are right about the 1Moz we will get $100M in royalties. Definitely better than $1M if the JORC hits 500koz. otherwise $10M upfront. My investment was in gold. I knew our lease had been drilled by Newmont when I invested and I knew they estimate 500koz. The REE is unproven at this point. PNG is not. If the REE pans out then awesome but at this point, we have nothing in my opinion.

GD