Ann: 291129 SAEMC Growth Pipeline Presentation, page-19

Glad to help if I can

VYR - I think maybe I did not explain what was communicated so well.

The “economic plan” was simply a reference to the fact that they were only going to present a plan to AGL that made sense for HGO. They had to work out how long they would need to get a return on invested capital. They also needed to be sure that a pit with a void under it was not going to stuff up the PHES plan. Lachlan said they measured to see that the void could support a roof safely. The also needed to study what access they require and whether PHES construction could go on at the same time as the UG machines work and trucks move ore.

In short they need to know what the impacts of a profitable (for us) UG will be on AGL. Lachlan said they needed corroboration from third parties so it’s not seen as a bullshit story from HGO

Also Lachlan said that AGL are new to this kind of project and are taking quite a while to get their heads around their own plans.

in regards South Hub commencing - he said he could not give me any clues on timing until he fully informed the market. But I agree why not just okie ahead 6 months ago.


Kingston - the timing of the Kavanagh UG idea seemed to me to be prior to PHES negotiations also but I could not raise with Lachlan as I could not check my dates

Bottom line is that the “buyout” clause was included in the agreement. Without it we could start mining as soon as we have a permit

VYR - I forgot to mention that Lachlan said several mining contractors gave been in detailed discussions with them. They have regular meetings to keep them informed. I understood they can pretty easily pull the trigger on contract mining without much delay. I know you favoured this option - and it seems to be very much on the table.