Fellowshareholders as you are aware the company’s governance...

Fellowshareholders as you are aware the company’s governance policy, based on therequirements of ASX listing rules, constrains what can be posted on publicforums like HC. However, I must take some time to post on todays’ ASX releaseand to also address the negative comments about what the drill results mean.Leaving aside some of the downramper comments which are par for the course, Iwant to address some of the concerns which some of the long-term shareholdershave raised today. In doing this there are a number of critical factors that Iwant to emphasise in relation to the company’s Frewena exploration results.These are:

• I keep trying to remind shareholders that exploration is a LONG game and it usually takes considerable time and multiple drill holes before you have a general idea whether you might have an economic prospect on your hands;
• Exploration is as much about eliminating areas of interest as it is about increasing the prospectivity of the target areas. In that regard, nothing that has been reported from Frewena exploration to date has diminished or downgraded the exploration prospectivity of the area and has in fact enhanced it;
• We are in a brand new and greenfields province (East Tennant) and Inca is one of the first movers here and has undertaken one of the largest exploration programs in the area to this point;
• The East Tennant province is new but the world’s largest geophysical survey, and the “scout” hole drilling, conducted in 2018-2019 by the NTGS and GA clearly demonstrated that the province was highly prospective for a number of mineral deposits, including but not limited to IOCG and SEDEX styles;
• The East Tennant province has little or no outcrop of the prospective rocks (which are Proterozoic rocks around the 1.6-1.7 billion years in age and comparable with the Tennant Creek and Mt Isa mineralisation epochs) and so it is a lot more difficult and expensive to advance exploration than in areas where there is significant outcrop of the target rocks;
• Some shareholders clearly have an unrealistic expectation of what early-stage exploration results should, or will, look like. Sure, we have not had a “discovery” hole, to the extent that we have a long intercept of ore grade material. However, whilst you might hope for that when you start a drilling program, it is not the most likely or logical outcome. Normally one needs to drill multiple holes, each one further enhancing the understanding of the geology of the area and ‘fine tuning” future targeting of holes, before the hoped for discovery occurs. To conclude this exploration, as unsuccessful, at this very early stage and with so few holes in what is a very large tenement holding is not logical or smart;
• What the market and impatient shareholders look for in drill results is different to what majors, who are looking for opportunities to secure ground, which is prospective for the Tier 1 style/type of deposits they seek. The majors have a good understanding of what the signatures of these sorts of deposits are and what are early indicators as to whether the area might have potential. In my opinion I consider that the sort of early results reported today are of the positive nature that may prick the interest of majors looking for the opportunity to secure a position in an early-stage exploration program.

Inlight of the above, I would also like to briefly comment on today's ASX release.As reported, these results are considered very positive. They along, with otherexploration results from the company and the earlier NTGS/GA work, clearlydemonstrate that the area is prospective for fertile mineral systems and theresults for Mt Lamb suggest that Inca has found one. Not only are therewidespread anomalous results for base metals, and other pathfinder elements, butthe observed geology, alteration and structure also ticks all the “must have”boxes. Sure, we do not have an economic intercept but we have confirmation thatwe are in a mineral system with the characteristics of the sort of Tier 1deposits that the major are seeking.

So, for me as both a shareholder and alsoa minority JV partner in the Frewena project, I am very happy with what theassay results show and have a firm belief that we are in IOCG territory. Theissue, in this bear market and with the share price going backwards is toensure that we continue to advance exploration to further enhance prospectivitybut at the same time do it in a cost efficient and smart way to ensure that shareholders' funds are conserved and used in the most appropriate way.

Asalways, I am happy to deal with any specific questions or comments fromshareholders if they want to contact me directly.

Jonathan