Ann: Operations Update - Granville and Taronga Tin Projects, page-114

Hi all.
I don't post much, although I have been a holder for several years and am quite deeply invested in this stock. I had my hands on a keyboard on Friday but decided to sleep on it instead of having an emotional rant here.

The way I see it, what could have been a straight line up turned out to be a downward spiral due to poor management only. The collapse of our subcontractor during G1-G2 transition is a outcome of zero risk management and no DD done on their capabilities to deliver. There is no doubt about PW mishandling the business and eventually bringing it where it is at now. Unless there were some criminal-bordering intentions of the management (PW, NM, DGR board) to run this down on purpose, it is clear that our current management doesn't have the capability to operate this and consequences have to follow the review. PW cannot deliver and as long he spends most of his time in a comfort of Eagle Street office, he never will.

Tin mining is relatively simple mining operation compared to stuff like copper or gold, yet it is still mining - laborious and machinery intensive backbreaking work. It is clear that PW doesn't want to move down to Zeehan to oversee the mining operations on daily basis and I bet the mine manager with 40+ years experience visited the place once in a blue moon as well. They try to run it on cheap naturally, but they left the mine there in hands of a few employees with no authority daily onsite to make sure that work gets done and machinery is looked after. As they say: "a cow gets fat only when the farmer's at home."

Now with $1m from DGR (I'm glad they stepped in to back the coy up, although I am worried what sort of backlash comes out of it yet), the review should clarify how are they going to restart Granville. Granville is the only possible near-term source of income and it doesn't need much to push it over the line. They spent too much money there to let it lapse and cannot sell it as that would put them back into petty junior explorers (run by an accountant). Although, it will require investment into the equipment and diligent management personnel being onsite on a daily basis. Personnel is the key here, management needs to have their authority at the mine all day every day for the crucial starting period. Make sure the mine runs, people know what to do and settle in their routine. Then they can consider expanding the resource, farming out St Dizier and others around. The TSF is satisfactory to do the job, infrastructure is there too, Stellar point to such option more than clearly and that area has plenty of tin left in the ground. They just cannot get the mine to operate which has now reached a point of embarrassment. If I didn't own as many shares as I do, I would be laughing at PW for his dilettantism.

Anyway, I'd be happy for them to sell Mt Cobalt, Kilkivan and all that. Taronga has to wait. It's a great resource that lured me in originally, yet with no spare cash (how could management really waste all that money over the years is still beyond my comprehension) and water restrictions (major issue I see in the future) will require this to stay in a corner. More cheaper drilling there is good, helps define the resource and model economics of it all. I wouldn't be against selling Taronga either for the right price. Although, ANW would need to clarify its future prior doing so, otherwise what else is there?

I think I am done here for some time. Back to work and good luck to all hodlers.

MiB