Ann: Explanatory Booklet, page-3

Further, due to the increase in the gold price between the date the report was prepared, to present, from A$1500 to A$1700 per ounce, the cashflow of the Dargues gold mine in 2018 should be increased by
41816 * $100, in 2019 by 39,671 * $100 and in 2020, 34371 * $100.

Using Sumner Hall's discount rate of 8% per year, this increases NPV by:

41816 * 100 * 0.92^2 + 39671 * 100 * 0.92^3 + 34371 * 100 * 0.92^4 = $9million

Using "Valuation Ratio" of 0.3 applied to the NPV, suggests the increase in value of the Dargues gold project since the date of the preparation of the report to be $2.7m.

If $32m was a fair and reasonable offer for the acquisition of a 100% interest in Unity Mining at the time of the preparation of the report, then a fair and reasonable offer for the acquisition of a 100% interest in Unity Mining at this current date, where the price of gold in Australian dollars is $1710, the offer should at a minimum be increased to $35m to be fair and reasonable.

Note the above calculations based on the independent expert's report did not take into account cash flows from after 2020 from the Dargues gold mine and rules out the possibility for Life-Of-Mine extensions, and does not value any gold that may be in the ground at the Henty gold mine. It can mean PYBAR's offer significantly undervalues Unity Mining assets, possibly to the tune of over 20%.

What's important is not whether the proposed deal is "Fair and reasonable" in 2015. What's important is whether the proposed deal is the *best* deal the directors are able to get, *now*.