Ann: Presentation Noosa Mining Conference, page-16

Borks and all,

As I read it, part of the SP wipeout was caused by the fact that we potentially had 3 porphyry mines in an environment where the cost of capital had risen steeply ( say 5% between 2022 and 2023). This caused the breakeven to rise steeply.

Add some CV supply constraints and inflation added 10% plus to the price and likewise the timeline blew out.

So the whole world and particularly large miners getting much more risk averse.

So the likelihood on anyone coming along to buy Sunny became remote as the capital cost to build and finish became too high.

Large miners have moved too to now look at acquiring production ready juniors. If not in production, at least those with a PFS or similar is now the minimum.

So, our response has been twofold; develop a strategy to look at shallow mining initially and to think in terms of the PFS only requiring funds to build the infrastructure for the shallow mine. The resultant cash flows to fund the deeper porphyry mines after that point.

Short term we now need to deliver drilling results to sustain the shallow mining concept at Bramaderos or at El Palmar.

What i'm saying is that we now have the strategy developed to make Sunny more commercial and appealing for the majors, without necessarily holding through to developing a production capacity.

BTW, Duffy's presentation at Noosa has now been released on the STM website.

Nothing new, but is does sound compelling and his presence adds credibility to the team.

Wazz