Ann: GBR Funded for Side Well Gold Project Resource Expansion, page-26

Everyone is entitled to their opinion. I disagree, so here are a few rebuttals:

The resource is mostly an open cut resource (388 kOz open cut at 2.7g/t Au). 2.7g/t Au is high grade for and open cut. None of GBR’s peers have a grade that high in open cut resources. Even the majors can’t match that grade in their open cut mines and the majors sit on the worlds best deposits. So it is a high grade resource and a great discovery.

The GBR resource includes a high grade core of 370kOz at 5.0g/t Au, most of which is open cut resource. Now, that is very high grade for an open cut. At 5.0g/t there is no question that toll treatment would work even if the haul distances were 200km or perhaps even up to 500km. 370kOz is plenty enough gold to start mining and toll treating.

Now these grades don’t include the recent visible gold drill hits which won’t do the resource grade any harm and could add a few more high grade ounces, so next MRE should be stronger based off drilling already done.

So toll treatment will work and they’re is enough high grade ore, so long as they can get access to a mill. I have no local knowledge in respect, perhaps someone else can comment.

With regards to upgrading resource to indicated, I agree it has to be done, however I don’t think it’s a big deal. This is because it’s already party complete. The hole that produced the visible gold was an infill hole and I expect the next MRE update to convert some ounces to Indicated just based on drilling currently underway. Converting the rest of the ounces in the high grade (5.0g/t) core will be the next priority. The good news is that the high grade core is mostly at open cut depths so the drilling will be shallow and cheap. It’s all RC drilling now also which is a lot cheaper than the diamond drilling that is required early on to understand structure. $2m buys about 60 RC holes to 200m depth. That should be more than enough to get indicated across the high grade core.