questions and answers, page-2

Okay, Second problem.

This concerned the lack of financing costs and taxation in CRC's DFS.

Taxation is perhaps one of the hardest things to calculate as it comes down to how the company structures its accounts.

I have however reviewed the latest Hartley's report which shows no taxation charges right up to and including FY2014. As a result I have gone with this information and ignored tax for now.

Financing must be included IMO so I have wacked in $37m at 9% interest pa for the 6 years.

I have also included the AUD price of Gold to $1,550 in my valuation.

This gives an NPV of $71.6 million which is not too far off CRC's figure of 80m as per their latest Corporate presentation.

It is also important to note that my valuation equates to 32.4 cps or 30cps (on a fully diluted basis). Hartleys valuation came in at 34 cps.

They did however use a lower gold price. So I think my higher financing charges/costs have been off-set by the higher POG and thats why the figures are coming out similar.

The only other thing to considr my is the level of dilution that will take place with any CR as that will obviously reduce the valuation on a per share basis.

P.S. I'm still going to look into this tax a bit more as I am not 100% satisfied with the info I have identified to date.