Ann: RIU Sydney Presentation, page-3

Morning all

My background... I invested in FFX precursor a couple of years ago. Have spoken with Mike 2-3 times and made good money off FFX/LLL but could have made more if I'd sold higher. Couldn't we alhave. Reason for background, I bumped into the FRS team at RIU and was pretty surprised to recognise Mike at the stand

Onto FRS... I stopped to talk and the story was somewhat interesting. I don't know anything about Canadian exploration but learnt a little, and the JV is a great way into that.

Personally, it didn't pique much interest until I heard the market cap. I suspect FRS has been punished since Feb in part due to Mike's track record, which prior to the end of FFX trading was good. Looks like an EV now of $4m ish at March quarter end, but that was prior to the JV

All FFX turmoil aside, I trade to make money. Mike has soon good before FFX and did good there, although there's something fishy that happened that I guess I'll never know. So how about FRS

Define opportunity to make some money, but I'll be waiting on the sidelines. Here's why

• $1.4m cash at end of March quarter
• $450k payment needed to ALX (might have the code wrong)
• $500k (steep) staff costs last quarter suggests the same coming
• $1m AUD exploration costs on the Canadian protect this field season, by October I assume. I don't know the phasing, and I assume that's the total to be split 50:50. Average that out, assume ramp up, could be 100k this quarter 200k next and the one after

By my envelope, maybe $400k left in the kitty by end June, which would likely be about a month to go.

I'll watch from the side assuming a CR coming. Could be wildly wrong but I think a low 6.x cent entry possible, and if so, I'll consider