Ann: MRG HMS - Nhacutse & Poiombo Higher Mineral Assemblage, page-33

Hi mate,

I'll try and keep it relatively short and sweet in regards to the recent announcements and what will move the dial.

Both myself and 2ic have went through the explicit detail in the past in relation to the project.
Mine with some optimism and 2ic with some more scepticism. Also for the record i don't really have too many issues with 2ic's work personally - their assumptions are there and inputting them as the basis you'd arrive at a similar outcome. it's just whether that turns to reality.

I think for the most part (and i don't wish to put words in anyone's mouth) the project will marginal (if you're bearish) or reasonably economical (if you're bullish).

The difference between each of those outcomes determines whether you wither away as a micro cap for many years and the S/P goes no where or IMV some decent upside.

In my honest opinion, i don't expect any drilling results or even materially some of the MRE upgrades to material change the dial. Why? well we already know there's a lot of stuff there and unless there's some materially tangentially different (better) results that come back it probably won't shift the dial on economics massively.

So IMV and it's what i've stated for a while, it will come down to the PEA/SS. This will be the first bit of documentation which will outline if it's economical and just how much. I'm not suggesting the work done, isn't important - they are atempting to build a large enough high grade resource to underpin a study so it's needs to occur to underpin the PEA - I just don't think it will massively move the dial in terms of the S/P.

The PEA/SS results and the lead to them is what will either result in us all taking a hike and dead rubber - or they're will be a favourable NPV which provides some decent upside. The resulting NPV (and assumptions underpinning that) will then no doubt require some pressure testing but that in my view is what this will need now.

We can discuss the jurisdictional hurdles, infrastructure as well as the timeline to feasible production but IMV all these sensitivities typically oscillate around the fundamental question of how economical.

I have not sold MRQ since the initial phases and again formulates only a %age basis of the folio. I maintain the view that downside risk is relatively low whilst upside potential still quite favourable.

My generally view here is a hold until PEA/SS results come out and i'll re-evaluate from there. If it dropped more i'd consider buying, if it double or tripled on no other news i'd consider selling some. Everything is a buy or a sell at a given price. I'm holding MRQ as current - that's just my view up to people to make their own assessments given their own appetite and risk profiles.

SF2TH