Ann: Mines Money Hong Kong Presentation - 20 Marc, page-10

re: Ann: Mines Money Hong Kong Presentation -... I agree that the numbers do not correlate.

If one produces a 33% concentrate from 0.5% ore the minimum ore input is 66 tonnes to provide the HREO - of course some HREO cannot be recovered so the input tonnes must be higher. In earlier reports only 10% HREO was reporting to tails so the required input would be 72 tonnes which at $32/t results in $2300/tonne concentrate.

I am not aware of the other costs that have been factored into $8,000/tonne concentrate but since this is the more conservative approach it was adopted.