Ann: Trading Halt, page-10

After the very successful drilling at both Browns Reef and Home of Bullion the company had $1.7m still in the bank in late 2022. The new Board arrived and then the early 2023 raising of $1.4m at 5c plus the attaching option destroyed the share structure and share price. We now have $1.1m which means $2m+ has been wasted with very little to show for it other than keeping the Board and advisors paid.

All sorts of promises were made on upcoming exploration programs including the resource definition drilling at Browns Reef in 2022 which never eventuated. Whilst AGC was making the Achilles discovery it was too hot for EMS to drill next door at Browns Reef in December, it was then pushed back to February of this year and in April it was abandoned with no explanation.

There are a lot of excellent explorers in NSW, Legacy, AGC, Waratah and Magmatic to name of few of the new crop who are characterised by tight budgets and quality work (using modern methods) with clearly articulated and executed work programs. EMS has not done this and this is reflected in the share price and almost zero market interest. Other than the recent trading activity on the back of the AGC discovery almost all the buying was by Duffin this year which has only accentuated the problem of concentrated ownership and governance issues that can emerge from a dominant shareholder who is also the Chairman.

Watching their presentations shows very little in the way of executable strategy and what we have seen is a loss of focus chasing lithium, then rare earths (remember that over hyped duster) and now they are jumping on the copper bandwagon. I find it incredible that they are only now getting the HoB geophysics analysed by SRK which they would have had since the project was first bought. Surely with these industry "expert" advisors this would have been done already with drill programs designed and approved? Apparently not.

I like the core projects and their potential but also will not be handing over 1 red cent without knowing what the funds will explicitly be used for and when. Unfortunately I don't think EMS has the slightest interest in existing shareholders hence the cynical trading halt and CR which I concur will be for peanut amounts and prices. In fact I predict no near term drilling at HoB but rather EMS taking a punt at drilling the second magnetic anomaly at the Black Range project. We can only pray for random luck on that.