Ann: Annual Report to shareholders, page-22

I did ask the company if they could shine some light on why the investor pulled out along with a question regarding the non release of any new grades for such a long period of time and a question regarding budget and production forecasts. They made it clear that they could not go into anything specific in regard to what happened with the corner stone due to confidentiality, however they did make it clear that the company did not announce that the inverter pulled out. They also stated that any interest from institutional investors wanting a large holding in Orinoco has been put on hold as we are so close to production and will be able to demonstrate the sort of value they believe Cascavel holds. In regard to the question on grade, they will be sticking to the policy of not releasing any grades from the 5kg samples as they are not a reliable way to judge grade. They thought production would have started by now, but thanks to the continuing hold up with customs, that has not come to fruition. Also in regard to grade, they said that while there are many things that occupy their minds about Cascavel, grade is not one of them..... In regard to budget and production forecasts, they said that they of course have their own figures, but are unable to release them to the market due to ASX rules. The reply that I received was quite long and put my mind at ease and am happy that the company is acting in holders best interests.