Ann: Appendix 3B, page-11

Hello LineMaker,

Good to be positive and I read your rationale. However, The SGQ portion of the chart you posted is really reflecting exuberant purchasing followed by panic selling. As such the chart reflects these two factors in the gaps that formed in the recent trading and are attributed to the anticipation of good results post Drillhole MAD 71 at the Mt Alexander project, followed by the lack of positive results in the follow up holes MAD 79, 80 and 81, But, that is what happens in exploration, you plan for the best. In this case, the red line you have drawn will be breached only if the results from the next hole -Windsor 3 are positive. If they are positive, the gap between 33c and 37 c will be filled because of euphoria - not because of substance because the price dropped like the hot potato when results of Hole 71 were not duplicated. Equally if this happens with the current hole being drilled at Windsor 3, the bottom gap between 13c and 17 c, will be very quickly filled or go even quite a bit lower lower. the next 2 weeks are very critical.

I'm not pouring cold water on your enthusiasm, but "up up and away" will require a lot more positive drilling results. The options look strong as well, but what is propping them up is the 2 year period to the expiry date.

SGQ need a hec of a lot more positive drilling results from many holes to sustain a price above the 50c mark; unless of course management is working towards introducing a Joint Venture partner into the scheme of things. In my opinion the $2 mill. left in the kitty is not enough to keep this ambitious programme in play for long.

Cheers,

helmenesh