Ann: New high-grade discovery at Hog Ranch's Krista Project, page-17

Hi Saila

• Bear in mind that grade is only one variable in making money in mining.
• AISC is the best comparison that takes into account:
• Grade, and
• Mining Costs, and
• Processing Costs and
• Sustaining Capital

• Hog Ranch, at .5g/t so far, with no economies of scale (see scoping study 9/6/20) has a much lower AISC than $10b market cap Northern Star for example. (I choose Northern Star for illustrative purposes because it is an awesome company that many investors are familiar with)
• Hog Ranch AISC is cheaper than all their Kalgoorlie operations and it seems approximately 50% cheaper that their "high grade" north American operation. (Pogo US AISC ~USD1300, while Rex is USD 902)
• ie Rex's Hog Ranch project at this stage looks like making a lot more money on every ounce they produce than Northern Star/Saracen

This just illustrates the massive profitability of large scale Heap Leach in Nevada which is misunderstood by Australian investors because these types of mines are not common here.

these widths and grades are way higher than the .5g/t used in the scoping

• 210m of continuous gold, from surface at .66g/t is a massive hit and highly significant
• 100m @ .77g/t even better
• the 100 @ .77 included 44m of 1.54g/t - which is most pleasing indeed

Just something to bear in mind and hopefully the market will cotton on soon.
... I suspect miners in Nevada will be already taking notice