Wonawinta is currently engaged in an infill drilling program...

1. Wonawinta is currently engaged in an infill drilling program seeking to convert part of its 52 million oz Ag resource into reserve. Company expectations are conservative and internally target mining 4 million tonnes of silver ore grading over 90g/t Ag. Key to the processing of our silver ores is their scale. We will process 2.4 times the quantity of silver ore compared to gold ore. Specifically, we are able to process 850,000tpa of the softer silver ore compared with 350,000tpa of the harder Mt Boppy gold ore. Furthermore, there is no road haulage cost for the Wonawinta ore with the plant onsite at the deposits. Both these factors (scale of production, and no haulage) impact substantially when applying the rule of thumb calculation for converting silver projects into gold equivalent at Wonawinta. The successful production of over 2.5 million ounces Ag annually will be very profitable for our company.