Ann: Suspension Update, page-9

Galena is in a spot.

Based on December quarter, the company needs onoing shipments of around 33k tonnes of concentrates per quarter to remain in a steady state (current forecast 25-30k tonnes) so not completely unachievable.

33k tonnes of concentrate sales in the quarter allows for $8m of loan and lease repayments, $4m of replacement capex and all operating expenses covered.

So in essence the ramp up to feasability study grades has been below par and really hurt and unplanned maintenance in the quarter to repair a torn belt and a mill discharge grate (both of which contributed to 166 hours downtime, one week I think) has really, really hurt Galena.

None of the above is fatal to the operation but it sets it back financially some distance. Much of the operational stuff can be, has been solved.

It will be interesting how the financial discussions play out.