Ann: Improved Economic Parameters for the Wiluna , page-4

re: Ann: Improved Economic Parameters for the... "C1 cash costs of US$33/lb, average annual production of 1.8mlbs, average processing head grade of 720ppm, recoveries of 85%, 10 years."

I am yet to be convinced that US$33/lb is achievable as an average over 10 years in WA for this project.

Reasons:

-Small production rate - 1.8mlbs

-Compared to Langer Heinrich (only other alkaline leach project). Cost of sales in 2011 is Us$32/lb for an annualised production of 3.3mlbs (almost double).

-The resource at Centipede/Lake Way can not as it stands support 720ppm grade for 10 years. The Centipede/Lake Way deposits contain 23.94 mlbs at 510 pmm using a 200ppm cut-off. Once pit optimisation and scheduling are performed at the higher cut-off there will not be 18mlbs in reserve.

-Cost to transport ore from Nowathanna (185km away) will be expensive and an environmental difficulty. Grades at Nowathanna are lower than Wiluna. The added cost of transport will significantly reduce the available ore that can be economically processed.

-Dawson Hinkler grades are very low (312ppm at 200ppm cut-off).

I would expect a C1 cost of at least US$40/lb for this project.