Ann: 3rd Quarter Activity and Cashflow Report - 3, page-6

re: Ann: 3rd Quarter Activity and Cashflow Re... Also of note with the stockpiled ore is that mining and transport costs will have been incurred in this Q with only milling costs to be incurred in the next Q, thus skewing higher costs vs. sales into this Q relative to next.

Production is really just ticking along (keeping people employed and the system operational) until some real ore (Pearl + Alliance South) is brought into the mix in the next Q.

I anticipate that we'll really start to see genuine profitability/ production potential from 2Q onward.

A little tricky in stating $3m in cash as $1.3m is held in environmental bonds and thus not accessible to ORS for working capital purposes. Thus effectively the company is debt free with $1.7m in operating cash available.

Cheers
John