Ann: Induced Polarisation Trial Successful, page-5

I fully agree that the time is now for taking a position but I think we should all be patient with the timing of a share price bump.

I personally don't see much upward pressure until Jan when the first results get released from the surface work done to date. And lets be honest, that's really just to have an independent review the grades already estimated by the local team onsite. There'll be no more jungle pics given the rain, so any announcements over the next 6-8 weeks will be fluff. Then confirmation of grades hopefully gives the $5 mil man confidence to pull the trigger.

Realistically won't start drilling until the end of rainy season (say April/May). What I do see this team do well is plan, so that means mobilising equipment to get it into the country ready to go once the rain eases off. We seem to have the cash to do that but probably not enough to drill a decent program hence the need to get the SP up slightly higher.

I would however say I'm pleased about the thinking outside the box and using technology (Induced Polarisation) to support the drill program much like what they did with CB and the chopper. If money is tight, every hole needs to hit pay. ESR needs to hit something of immense value that can be extracted easily enough and transported to market. even 5km of extraction through this sort of terrain isn't going to be easy - yes there is a highway but it will be mountainous jungle from the ore to that highway and cutting that road won't be cheap - no matter what people say about wages in the local area, you need equipment. The stuff ESR doesn't have... in other words its $$ spend that needs to have a very big payback from a 40 year ore body. Which we may well have. So no more talk of elephants, its still buried somewhere. Now we're chasing crocodiles which is the national animal of TL!

I can't see anything making the SP push higher this year but neither can I see anything making it fall. Good time for new holders, old holders probably just not even close to break even except the few that have been averaging down either before or after the pivot to Timor Leste.

Lets all hope the grades are as hyped so far and the ore runs deep. We need the $5m to be exercised then its off to the races.

GL2A