Ann: Change in Substantial Holding - Creasy Group, page-132

Hi Dini,

FYI:

GAL will first need to establish a "JORC resource".

A JORC resource is the standard used for measuring the in-ground size of a mineral deposit that a company has discovered i.e. Callisto.

Right now, GAL is doing a whole lot of exploration work in order to determine the tonnages and grades that the Callisto deposit may contain.

Once GAL have enough drilling data, and they have hit what they think are the outer perimeters of the Callsito deposit, GAL will then be able to announce an initial or "maiden" or "inferred" JORC resource estimate. IMHO, this could happen in the second half of next year.

This will be a very important milestone for GAL!

Because the JORC is the standardised method of evaluating the size and grade of a mineral deposit, the establishment of this "maiden" or "inferred" JORC resource estimate, will really be the very first time that investors will be able to accurately assess the true value of the Callisto resource and calculate NPV's etc. I would suggest that once this milestone has been achieved, the GAL SP should reach at least A$3.00.

Quite obviously, the establishment of this "maiden" or "inferred" JORC resource estimate will also allow major miners to value the Callisto resource, as well as GAL as a company. IMHO, this could also be the time that a major (probably IGO) will signify their intention of entering into a JV (as just one of several options) and thus undertaking further exploration and development work at Callisto, which the view to moving to the next or second JORC level, which is the establishment of an "indicated" or "probable" resource. It is also at this time that a PFS will be undertaken to evaluate the economics of the proposed mine project, (which by this time might also include the MTJV tenement, if CNJ and GSR have also been able to establish their very own initial or "maiden" or "inferred" JORC resource estimate).

I hope this helps you a bit.

Best regards.