production guidance, page-7

Mate of mine is working as a diesal fitter for downer in Nth Qld.

He tells me that he can't even get to work (BMA 3hrs away) due to the flooding up north (Mackay area) let alone the flooding of the open pit coal mines.

Apparently they sit on 95% pay just to stay at home during these periods.

Surely we can't be in as bad predicament down south of Karlgoorlie.

One thing that worries me is that we were 4mil negative debt on our balance sheet last quarterly (30.01.12), now we had 5m in proceeds go through tranche 2 straight into our debt so what we should be 1m Cash positive plus a couple of mil from sale of gold BUT this announcement said that we're nearing net debt neutral which begs me to ask the question.

1. Are we still paying to fix our ore stockpiles from the rain
2. Is the 3-5 Million descrapency due to our exploration campaign ramp up and or mill works (crusher circuit namely) or gold sitting not sold yet.

I'm hoping for the second option but will definately pick some more up if sp hangs around or drops a bit further.

5 weeks to the next quarterly.