Ann: Quarterly Activities and Cashflow Report , page-9

I have spoken to the Company in the past and have on those occasions had a straight response. The issue remains as to whether the structure of the deposit can be cost effectively mined. It seems that what they are trying to do is not typical - and the 'easy gold' has already been got long ago. I think that management have been on a learning curve and in the past have not understood the difficulties inherent in the deposit. The past predictions made by management resulted in lost market confidence and were unfortunate.

I don't know if CTO can mine the gold effectively, and there has been a lot of dilution due to shares/options being issued - but in this climate that is still better than debt.

If the gold price stays around $1500 - $2000 then a lot is possible, despite the dilution (being self sufficient for the quarter on 2500 ounces is not all that bad and shows the potential should production be able to be increased significantly). Its now up to management.