Ann: Mining Indaba Conference Company Presentatio, page-14

re: Ann: Mining Indaba Conference Company Pre... Squidd

I think in regards to funding I think the bulk of it will be non-dilutionary.

I have spoken to a number of small cap ceo's over the years and one thing I have noticed is if the payback period is short the LVR you can get from a financial institution is large.

Exxaro has stated phase 1 will cost them $225m in a recent article.

There is no reason why this figure would be any different for EQX. Assuming we use our existing cash to fund 20% of the capex ($45m) I would not be surprised to see a major financial institution fund the rest.

The reason being is simply because based on the margins the payback period for the debt should be less than 18 months. Also the nature of what we are developing is a pretty simple mine. The rail line is there (albeit in need of some work) and the port is there as well. There is not a huge amount of execution risk here which is why I would not be surprised to see us use debt funding which in turn means little to no dilution.

Obviously management may have a different view on what level of debt they are comfortable with, however I personally don't expect to see us existing shareholders get heavily diluted. If there is a raising of some sort I expect it to be a placement at a significant premium to the current share price as I believe EQX management would see a raising at anything under $2 to be too deep a discount especially considering the last raising was done at $3.