Ann: 2017 Full Year Statutory Accounts and Appendix 4E, page-95

I think there are a lot of people who don't quite appreciate the significance of the information presented in the latest annual report. The information most definitely was NOT "as expected".

The auditors forced the company to insert the note I posted yesterday regarding the company operating as a "going concern". Without this note the auditors would have qualified their audit opinion on the basis that they had serious concerns as to the company's ability to continue.

But the thing of most significance is the lengths the auditors forced the company to go. Just completing the Sprott deal is not enough for the company to remain viable. This will have been a very serious and forceful discussion. Please read the note 2 or 3 times if you are invested, you MUST understand it.

In order to avoid a further raising of capital BDR state the following MUST happen:

• the company MUST achieve it's current cash flow forecast
• the agreement with Sprott MUST be completed
• the TOTAL unsecured bank facilities  of $23M MUST continue. No repayments will be made and no assurances as to it continuing have been given.
• the $38M owed to MACA MUST remain outstanding. Again no repayments will be made and NO assurances as to it continuing have been given.
• CRITICAL to achieving the cash flow forecast is achieving forecast gold production
• the plant upgrade must be successful and on time

The auditors are not telling you that this is a viable operation, they are ONLY telling you there is enough information for you to make up your own mind.

THE COMPANY WAS FORCED TO PROVIDE THE ABOVE INFORMATION!