Ann: Chatree Plant 1 Overhaul Project Update, page-22

Italics are mine.

• SAG mill being upgraded a bit, which takes some time (new screen).
• Drilling a lot for grade control.
• Blasting pattern is in. Want to up front (mine) the high grade areas before blasting. Want good grade in the new plant.
• 12 month license for blasting, just got it.
• 0.7-0.8g/t grade prediction once getting to the higher grade areas (meaning blending, I assume).
• Focus is on refurbishment more than resource upgrade.
• Applying for 10 year mine plan, like A Super pit.
• Nov number was miscalculated, I guess counting inventory as production.
• Have to refine in country. Fine cost per oz, same as Hong Kong.
• Trying to get the government to improve their lab to decrease the 5-7 day dore assaying delay vs 1 day that Chatree takes.
• Refiner owned by member of the royal family.
• Laos - 70's year old geologist has experience in Laos. The Chatree gold belt trends North towards Laos. Low priority.
• Exploring South-East like Sua Dao.
• Prayuth government is scorned about TAFTA being extended re: Bangkok Post legal charges news, the staff didn't even work at the mine at the time.
• Legal issues maybe about signs put up on fences on the highway, even though the government had asked the company to do it.
• Cash compensation - talking/negotiating with the Prayuth government didn't work, had to progress to TAFTA, TAFTA confidentiality means they can't disclose too much.
• Want to get as much as we can to compensate - cannot disclose.
• Loans - Bangkok Bank, approved indicative term sheet previously, liaison from the bank was part of the previous government negotiating team, which changed when the government changed. Meaning Bangkok Bank liaison is no longer part of the negotiation group.
• New government had a delayed appointment, meaning a delay to get a new negotiation group.
• Nebari, needed safety net cash in case of a breakdown in the plant, which would have screwed the company if having no funding.
• An alternate lender wanted further DD, which would mean a delay.
• Zurich, no 'immediate' requirement to pay them, I didn't hear the rest.'
• Bonus is for: getting the plant reopened, and $150m tax holiday, and resource upgrade, quartz lease, mining license, SPLs. They stopped Chairman from visiting Thailand for a while, for fear of him being arbitrarily arrested as a negotiating tactic. No mention of it being funded by expensive debt / raising.
• Buyback vs dividends - raised cash once in 10 years, already low shares on issue. This sort of thing is prohibited by our loans.
• Want to do dividend or buyback.
• Can NE justify the holding costs? NE was our future, but got suspended after Chatree issue.
• At one time in history, was the largest silver mine in the world.
• Were offered script for NE, but needed cash (though we had holding costs since). Don't want to repeat the sale issue from last time, with the buyer not having the cash.
• Won't accept firesale (we're probably closer to not needing the funds now).
• Want to see the cash upfront for any buyer.
• Webinar is Bonnie's initiative.
• Conferences - it's useful to have institutional holders, and would help the SP.
• Community relations - complaints about costs of 'parties' (LG, LG, LG?).
• Thai law requires support by the nearby villages, for every license. (Village heads are famous for taking bribes during elections, and then telling their villagers how to vote. The community relations needs to be so strong that this becomes less of a possibility - extortion of that sort. If the villagers like the company so much that they're less likely to vote against)
• Have a water bottle factory, cost per bottle <3 baht.
• 40 baht a head per event.
• Lunches 100b per head.
• Huge ROI (meaning community relations is quite cheap, and necessary).
• Community events are common in Thai culture, especially in small villages - (everybody gets invited. See weddings, funerals, monk initiations).
• Government would suggest the company to do it, if they want the government to support the company.
• AusChamb can get meetings with officials, Thai and Australian.
• No answer to my question (existing shallow workings in our SPLs near Sua Dao), which is a bit more medium-term anyway.