Ann: Appendix 4C - quarterly , page-12

Hi Tweaty

I do not have a lot of time today as I very busy in my business and I am flying out to Melbourne for the rest of the week.

Dave has stated before that there cash burn is about 250 000 per month. They started with $3,000,000 add the $400,000 less $750,000 give you $2,650,000. I do not think you can just add in the $250,000 it could be more or less to the nett cash at bank. I think you will need the end of year balance sheet to work out the real Nett.

For me the cash at bank is lower than I thought it would be.

There is something like $50,000,000 of contained metal and bonds that it looks like it is going to Nett less than $2,000,000. But as I have said before this is about the removal of what has become a liability.

$640,000 for administration costs and corporate overheads now there a liability that needs to be reduced.

After 8 months the 5 directors and the use of an external company the "Strategic Review" as I read it is a given and should have been in place since the GFC

Quote "the Company has decided to narrow its focus for the short- to medium-term, concentrating the Company,s technical and financial resources on a core set of opportunities that are intended to deliver key immediate economic outcomes and a solid platform for growth."

Still no business plan to become cash flow positive. Not Good.