HENTY GOLD Windup Notice published on ASIC website, page-110

There has been a considerable amount of negativity in the HC comments on CYL, most of it from non-holders without any facts to back up their comments. While everyone is entitled to their opinion, it would be helpful if comments were at least realistic.

For example, a recent rather derisive comment was to the effect of "Please cite ANY other time that a gold miner issued a press release to announce a resource anywhere near as small as 163K ounces".

To me that announcement was actually quite significant and positive, and it included the fact that drilling at the Four Eagles Project had identified a high grade resource of 163K oz at 7.7g/t including 70K at 26.2g/t in the Iris Zone. They look like pretty good numbers to me. And the announcement also included the information that high grade zones are repeated at depth, as occurred in the rich 22 million ounce Bendigo Goldfield. plus it stated that the Four Eagles deposit had the potential to fund the proposed underground exploration tunnel.

And that's exactly how some of the big mines in Africa were borne. I recall from my time in Central and Southern Africa in the 1950s and 1960s that they would mine small high grade deposits and then sell the gold to fund the next stage of exploration and development, progressively getting bigger and deeper. CYL appear to have developed a similarly sensible pathway towards developing a large scale goldfield in the Bendigo region, and those of us who have taken an interest in the Bendigo history will be delighted to see the goldfields come to life again.

There has also been negative comment about CYL operating in three States. Anyone with any knowledge of the major Australian mining companies would know that this is exactly what those companies have done to grow to their current size.

The fact that the directors tipped in another $150K to buy shares at $1.00 last month is a pretty good indication that they have confidence in the future of the company.