Cashflow model:Assuming the processing plant operates at 15%...

Cashflow model:

Assuming the processing plant operates at 15% above nameplate capacity, spot gold price at $3,000/ounce, Klondyke ore at 0.9g/t Au and same debt repayment schedule, quarterly cashflow as below:

Cash inflows:

Klondyke:
620kt milled x 0.9g/t Au x 95% recovery = 17k ounces

Blue Bar:
70kt milled x 1.94g/t x 95% recovery = 4k ounces

Cash inflow at average selling price @ $2,650 per ounce and 21k production= $56M

Cash outflows:

Existing operational costs:

$37M to be reduced to $33M with reduced strip ratios (DR referenced a $4M reduction in mining costs in latest conference call).

Debt repayment, interest plus other costs: $12.5M

Mining and transportion of Blue Bar ore:

$1000 per ounce cost (conservative): $4M for 4k ounces produced

Payment to HAO: $12/t = $840,000 for 70kt

Cash outflows: $50M

NET free cashflow: $6M per quarter

Bear in mind, in all likelihood, CAI has negotiated a significant deferral of payments to MAH to conserve cash position and prevent a capital raise therefore any surplus cash generated in H2 will be used to satisfy our creditor obligations.

Rough estimate of adjustment payment to HAO is $1-2M per quarter, payable in the next financial year.

Looking forward to free-cashflow in the next financial year with Bulletin coming online - expect free-cashflow of $8M per quarter allowing for HAO payments/profit share on Bulletin.