Ann: March Quarterly Activities Report and Appendix 5B, page-10

I queried the sentence with Keith Bowes. As i said its all VERY positive. Its good to have a bit up your sleeve ie under-promise and over-deliver. Response below. Quite often directors ignore queries. So that says something about their approach. It also shows that they are nimble on their feet looking into innovative ways to improve head grades. I am very impressed and encouraged. We are in good hands. With their evident knowledge and skills we got a sporting chance of getting the SP back up to reflect the true intrinsic value of the asset.

"Hi Andrew

Thanks for your support

The context behind the sentence you have highlighted below is really two-fold;

• Firstly we believe there may be some cost saving opportunities that we could work on – specifically around the capital costs for the tailings dam and water treatment.
• And secondly that there are some processing options that would allow us to increase the head grade in the feed to the mill (early days, but interesting)

Note that we are also using the economics from the study to help drive the strategy for our exploration program i.e. where to focus our drilling efforts

Regards

Keith"