Ann: Muckanippie Project Update, page-4

Hello. I'm guessing the whole Rosewood PTR plus PTR/NYM deposit so far now will be around 350 million tonnes however much of the unknowns depends on the heavy metal and titanium grades, particularly at the NYM JV. The core of the 100% PTR ground looks like its shaping up very well because the new lines of drill holes were drilled more deep (average depths of 34 metres for drill line 2 below and 47 metres for drill line 4 below). Below are the four lines that look the best for the 100% PTR ground. My guess back of the envelope 183 million tonne JORC below at 10% HM grade includes the 5th most eastern drill line (not shown) that averaged 6.5% HM. As shown below, the other two reported assay drill lines averaged 10.9% and 11.8% HM. My 10% HM grade for the Eastern 100% PTR JORC is intended to be conservative thus I'm hoping for the grade to be higher. As for the NYM ground, I have crunched some numbers but will keep them to myself because its much more speculative until the actual assay results received.