Ann: Andy Well Project Update , page-12

Hi Andrewk

It's not inside info...the company is in trading halt, therefore the details are available (ie the shares cant be traded until the announcement anyway), generally thru a full service broker who has a term sheet. Which s logical since people have to be approached for the cap raising anyway so details have to be divulged.

Having said that, not going to give exact details out since subject to change (eg how popular the CR is could impact how much is raised). Has to be announced today before 10 am anyway...or if there is a delay, the company will have to go into a suspension.

They do not need to raise the entire development amount now because:

1/ It's WAY to early...development finacing doesn't usually occur until after a feasibility study is completed.

2/ They have no idea how much they will NEED to raise for it since they have only started exploration therefore have no idea how big the resource will be...is Wilber a lone soldier for example or are there other nearby deposits. If the former a smaller amount to be raised, if the latter a larger amount. Thats only one of probably hundreds of things that need to be ironed out.

3/ The development capital will likely not be all equity (unless the SP was much much higher than current levels)...it will be a hybrid equity and debt...and a bank won't give them financing until several more milestones are achieved (most important a feasibility study, hence why its called a bankable feasibility study).

4/ They would prefer to do the development raising at a much higher price, which will hopefully be achieved thru further exploration success not to mention an increasing resources statement.

A heap of other reasons too but they are the primary ones I can think of.

Cdchi1