abu environmental assessment, page-2

Wilb,

I spent most of the last weekend analysing that document.

Personally I would rather the less people know about it the better - less chance for objections and hence delays.

However, now it is out in the open, we may as well capitalise on the content.

I discussed some of the content in the ecology and water sections with some colleagues who are very knowledgable in this area and in their opinion, there are no 'show stoppers' in the application.

Depending on the number of negative responses, there may be some delays and/or 'please explain with more detail' from EPA, but this will mainly involve expanding on the detail of the application and should not significantly affect the timeframe of the application.

From a financial point of view, the figures in the report indicate a stage 2 cash cost of A$458/oz rising during stage 3 to perhaps $700 depending on grades and mining conditions.

The report indicates the mine is breakeven (stage 2) with a gold price between A$500 and A$600, so we have a massive buffer even with gold price dropping as I type.

Based on this and with the assumption that there are no major objections or delays, I would expect the licence to be granted sometime in March to mid April 2014 with production to start immediately.