Ann: Letter to Shareholders, page-72

I must admit, I am a little confused as to how Beacon shareholders (us) make money during the period we have to satisfy the JV agreement. The key here is grade to ensure the mill can still achieve a similar production profile for Beacon shareholders despite the Lady Ida obligations.

I've completed the following table to highlight how grade influences the impact to Beacon production as we move through the various stages of the agreement.

I might be missing something but I struggle to see how without high grade material Beacon continues to hold a similar production profile to prior years. My understanding is that Lady Ida is about 1.7g/t? Part of the arrangement is that the mill priortises Lady Ida ore, what about all the capital expenditure we just made at Macphersans?

Also, if you think I've misunderstood how this agreement works, please call it out.

Pretz