Ann: Appendix 3B, page-4

Hey Kelsie,

Even with $400m minus $20m for Teo with $4m pumped back in for his 19.9%. They need to raise money elsewhere for Gold projects, outstanding debt and admin until 18 months out once they start getting money from production so I think they will want the $27m from options at 10 cents. My thoughts are they may hold off on funding until after August so they can vote on reissuing options plus the 19% for Teo if he has $400m. I dont think they can forward announce plans to reissue until they expire.

Time will tell but there's a precedent set by getting shareholders to pay up .1c twice already for these options and KR and some old board members have some options as well not to mention given the death spiral gurney issues I think they would be quite happy to raise $27m at 10 cents should they finally get the $400m funding also would give Teo and the Lenders peace of mind seeing these exercised into cash for the company.