Ann: June 2014 Quarterly Activities Report, page-22

The forecasted cash operating cost In June presso was as follows:
HMS - $0.30/lb (2014)
SXEW - $0.72 (2014-15)
This quarterly quotes the following:

• HMS (Kipoi Unit Cost) - $0.73/lb Obtained from Table A, Cu Produced, 5,903t x 2200 = 12,986,600lbs divided by Cash cost of production in Table C $9,523,000

The production cost, if you ignore last qtr's ROM stockpile movement figure <10,184> is down by nearly 45% from Jan-14 qtr

The above unit cost may not be comparable to the cash operating forecast, but the contrast is stark. I hasten to add though, that the HMS was never intended to be the main show, its the operating stats of the SXEW that are the key here.

Also fyi Kipoi Unit costs for HMS for 2012 was $0.76 and 2013 was $0.61.

• SXEW. Pretty sketchy here. The best I am able to gleam is: $6.3mio revenue. Costs are unknown and are capitalized until nameplate is achieved.

On the positives though,
- Heap leach cells 3 (93% complete) and 4 (10% complete)
- Overland conveyors 48% complete
- 14,000t cathode is being forecasted up from 12kt.

For those that bought this morning, well done, you got them at a good price.

gltah