BinbinI need to clarify something for you or maybe I am...

Binbin

I need to clarify something for you or maybe I am mis-reading your posts. Either way I hope this helps.

1. The 9c price was set with Oaktree. They were the only ones in that deal. It wasn't a normal placement. The actual share price around the time was 5.5c, so it was done at a massive premium to the price. The negotiation with Oaktree had been going on for nearly 12 months which included visits to Mt Carbine and Spain. Oaktree had assessed other groups and decided that they wanted to come on board with EQR and the management team (Kevin and Oli). Oaktree had spent north of 100m Euros on the Spanish facility but couldn't get the recoveries high enough (below 40%) to make it profitable.

2. The latest raising was due to the QIC deal which they had also undertaken many months of due diligence. To meet that requirement EQR needs to hold $5m in cash. To raise the money, they had to go to the market and raise the normal way which is usually a discount to the average share price at the time.

There is no relationship between the 9c and 4.5c raisings.

The two recent webinars and this announcement about record productions suggests that the hard work they have been doing behind the scenes is starting to show improvements.

One of the problems Mt Carbine had was the previous management wasn't able to achieve recoveries above 40%. Kevin and his team have been able to increase the recoveries above 80%. Now they are working on increasing the capacity by adding more ore sorters, crushing capacity and identifying the grades (part of the recent problem, apart from Cyclone - part of the open pit grade was lower than the old drilling results indicated).

Kevin is in Spain and basically undertaking the same process he did at Mt Carbine. From the webinar's he indicated he thinks he know what the problem is and now it's a case of fixing it (improving the recoveries to say 60%). The record weekly production would suggest some progress is being made and more to come in the coming weeks and months.