Ann: EGM Voting Communication, page-9

From 'The Portia Tailings Unrecovered Gold - The Hidden Asset' dated 16 January 2019 by co-founder Bob Johnson:

'Havilah’s current debt predicament can be traced back to the poor mine practice, lack of grade control, and bad ROM pad management of the Portia project.’

Poor mine management at the Portia Gold Mine set off a chain of events that brought HAV to its current predicament with so many opportunities slipping away. Done right, what could've been:

- Revenue for Portia gold tailings would have been money in the HAV bank account. (say cash +$16M #; capital n/a)

- 50/50 Revenue share would not have been amended to 15/85 (impact not calculated)

- HAV would retain control of processing and gold room

- Contango may have held onto its shares and not trashed the SP

- 23 million HAVO at 30c would be exercised (+$6.9m; +23m)

- 7 million director and employee options would be exercised (strikes 25c to 54c) (+$2.4m; +7m)

- Bergen deal and dilution (7.4 million) would not have occurred (-$1.2m; -7.4m)

- Rights issue at 20c (28 million shares) with 1:2 HAVOC (14 million) would not have occurred (-$5.6m; -42m)

- Controversial Portia / North Portia divestment would not have occurred (-$1m; n/a)

- Credit risk carried (CMC receivable) would not exist ($12.5m; n/a)

- Investec and NAB debt would not be required ( $?m; -10m)

- HAV, Kalkaroo, Mutooroo and Kalkaroo Pastoral Station would be unencumbered

- Investec dilution (total 10 million; 7.5 million to date) would not have occurred ($0; -10m)

- Rights issue could arguably be done at 70c range, assuming the SP held at those levels, to raise funds for exploration and/or development, not just to keep the lights on.

A scorecard of these missteps and missed steps makes for interesting contemplation. Net cash would be ~ +$17.5m higher ##; dilution would be ~ - 29.4m shares and options lower ###. Quite damning really!

People running HAV are the problem, not the assets.

Stewart must be judged on performance. Stewart and his fellow directors, together with senior management, have taken HAV backwards and placed it in an extremely risky position.

From RESET letter: To begin a process of renewal for Havilah, vote to remove Stewart as a Director!

Your HAV Share. Your Vote.

DYOR

# 'At 1 gram per tonne gold grade, for 670,000 tonnes of tailings this would suggest 21,543 ozs of gold. At 16 January 2019 the spot gold price was A$1,790 per oz. The gold in the tailings could be valued as high as $39 million.' – Per Bob Johnson
Say $1,600/ oz at 95% recovery at 50% HAV share.

## less current net debt.

### Shares and options currently outstanding 243.2 million.