Ann: Company Update on Status of Gold 2 , page-7

Hi TFP,

Refer note below; I have taken this from one of my old posts after attending the AGM last year. This was the potential of gold 1 & gold 2.

Can this ever be achieved in order to see an SP of at least NTA?

"Focus now is to generate cash flow from Gold 1 & Gold 2 (which is soon to be commissioned)-combined production of 40,000 oz au per year at a combined cash cost of approx $US650, which will generate approx $18m operating cash flow once fully operational at gold price $US1100".

Now we know that from the recent update that the investment case noted above has not been met - a total combined production target now stands at 33.5k oz pa (and that still depends on higher grades), costs appear to have blown out and they are still some way off before obtaining steady state production.

I also note that the market is pricing the total resource (3m oz) at an enterprise value of only $3 per oz.

So why the current share price when gold is at near record highs?

Simply the market is questioning the ability of MLI to make money from their tailings projects and at this very moment the market appears to be right.

Cheers