Ann: Annual Report to shareholders , page-4

"HPC30 Units did not match expectations" Purchased demountable modular gravity separation plant capacity of of 50tph -2mm. Then, contamination,feed circuit modification, wet screening installed, 6 months later, now determined HPC30 units not economic , evaluating purchase of crushing plant, no mention of any tin in transit, and cash needed by February 2014.

QUESTION : Did not match expectations is a fairly sweeping and grey comment to me. The machinery did not perform to specifications ? OR our staff are not operating it to peak efficiency ? OR a combination of both ? All this leads me to the point, and there has been no hint by directors that it occurred, have we ever sort or asked the chief engineer of the plant manufacturer being used to come out on site for a week and inspect the operations ?

A person regularly on alluvial sites, fresh eyes, a second opinion, "potentially" some on site modifications and/or staff training may make the operation cash positive as we know it should be or is this person who says we need a crushing plant ?