Ann: Trading Halt, page-152

Not sure what to think yet: prepare for the worst, hope for the best, etc etc. But a couple of off-the-cuff questions.

The first question is on Power Metals (TSXV: PWN): Winsome currently owns 19.6% of Power Metals and has the opportunity to acquire a bunch of new PWN shares that would be the equivalent of 7.5% of Power Metals existing share base. Yes? So, that would suggest Winsome would hold something maybe north of 25% of the PWN share registry. Does the TSXV have a similar 19.9% limit to what the ASX has, does it allow a small incremental creep (ASX allows a 3% a year creep I think) and if not does that mean that Winsome would need to sell off pretty much of the shares it acquires? It may be that the net cost of the Power Metals transaction will be much less than the C$3m seaemay indicated. Or have I got that wrong?

The second question is on the cost of deferring the exercise date for the Renard option. I thought the cost of putting off the exercise date from the end of September 2024 to the end of December 2024 and then from the end of December 2024 to the end of February 2025 was C$2m each time but each of those payments effectively covered the care and maintenance costs of Renard over that time. I also thought I read that the c&m costs of Renard on an annual basis would work out to be around C$8m. If Winsome is now talking about another 6 months delay in exercising the option then that means they are effectively avoiding to pay the c&m costs for that half year, "saving" themselves from directly paying about C$4m in c&m. So does the C$8.5m gross payment whittle back to a net or extra payment of something closer to C$4.5m? Also, I don't comprehend whether the default fee of C$2m is somehow factored into the delay fee of C$8.5m - so, Winsome pays $6.5m to defer their decision by six months and if they still do not exercise the option at the end of that time then they have to pay an additional C$2m - or if the cost of deferring the decision by six months is C$8.5m and if Winsome does not exercise the option at the end of that time then there is an additional C$2m penalty payable.

This will be made clear when the announcement is released to the hoi polloi, no doubt, but if any of the sophs have the term sheet maybe they already know what the score is.