30th june 2010

1. Option Issue
Ross Lauthean 24-07-2009 500,000 value $89,000
22-12-2009 500,000 value $89,000
Albert Longo dd-mm-2010 1,000,000 value $356,000
Michael Hunt 22-12-2009 2,000,000 value $356,000
John Williams 22-12-2009 7,000,000 value 1,202,500

Page 18 Corporate Governance Statement, read them all
Principle 8. Remunerate fairly and responsibly.
This is in sync with BEST PRACTICE

2. ORE RESERVE TABLE still showing 4gm PLUS per tonne.
So far the production figures have averaged 2.1 to 2.3 grams per tonne.

3. Page 21 Cost of Sales ($4,477,915)
Page 22 Trade and other Payables $6,734,743
Page 40 Current Trade receivables $350,074
I'd like to audit the books!!!

Watpac's initial billing was approx 700,000 per month on 1 shift. 2 shifts lifted this to approx $1m.
Is this a cost of sale or a liability?

MY CURRENT ESTIMATES for Sept results.
Trade and other Payables could be reduced by 2.0 million during 3 months of production. Any increase on that would be a bonus.

I'm allowing for extra expenses during these 3 months as I suspect there were some extra ordinary issues and the ore grades heaped on the ROM pad at the beginning of the quarter was extra low.