Ann: Presentation on the Boda Porphyry Discovery to NSW Mining, page-40

This is long way of answering your question.

ALK’s announcements are full of technical jargon and very factual which is difficult to decipher at times. There are some interesting aspects of the latest announcement and presentation which are worth considering. It is sort of like connecting the dots. I would like to have access to Ian’s verbal comments on the presentation but cannot find it.

As I do not have access to it this is my interpretation of these two documents (I am not a geologist) so more than happy to be corrected as some parts of my views below are certain to be incorrect.

On slide 16 of the presentation, titled “Macquarie Arc – Porphyry Geochemical Signature” the left-hand side has been repeated in a number of ALK’s presentations on Boda (note it is not an ALK document but based on other geologist’s research – see source note). At the bottom of that slide they mention “Proximal pathfinder elements” like AU, Ag, CU and Mo which they state are deposited at high temperatures which “Do not migratemore than a few hundred metres from the intrusion” That is, if you find these you are close to a potential high grade zone.

On the right side of this slide, they have a reddotted circle and in a red box they have Cu-AU-Mo – ie proximal pathfinderelements. So I interpret this red dotted circle to indicate they believe the potential high zones are in this area of Boda at the north end ie the source of the mineralisation..

In this slide they also describe distal pathfinder elements (i.e. in green) which can migrate several few kilometres from the central intrusion complex”.

On slide 13 in reference to Boda two they state “Anomalous copper and pathfinder elements could be indicative of a distal componentto a large fertile magmatic system.” That is they are not that close to the high grade zones yet.

On slide 15 they state “Evidence through metalzonation of a number of separate hydrothermal cells – Boda; Kaiser; Boda Twoand Boda Three.” which I interpret as evidence of the potential existenceof 4 high grade zones of mineralisation.

On page 5 (just before the Boda 2 heading) of the announcement regarding Boda they state “This zonation of metals suggests a possibleproximal magmatic source to the Boda system.” They are referring to hole 16 where they found Mo as stated“Significant molybdenum (Mo), copper and gold mineralisation were intersected by KSDD016 including 42m grading 0.56g/t Au, 0.54% Cu, 130ppm Mo from 764m in northern margin of Boda.” This may turn out to be a significant hole - it has been drilled at the northern end of Boda.

Just above this in the same paragraph they state “KSDD015 intersected a similar pyrite-magnetite-calciteactinolite breccia with an intercept of 113m grading 0.39g/t Au, 0.16% Cu from 764m. The brecciais observed as texturally and mineralogically very similar to the high-gradebreccia intersected by KSDD031 and is either a lateraldisplacement of the same breccia or a separate breccia zone within Boda. So could be another breccia or part of the breccia discovered in hole 7 but displaced - hole 15 is at the south at Boda.

For Boda two on page 6 they state in reference to hole 30 “The substantial gold-copper mineralised intercept shows intense calcpotassic alteration with zones of magnetite-calcite brecciation and calcite -chalcopyrite ± bornite veining, with significant results…” and “Further drilling is planned to continue to define the extensions to the mineralisation and to identify high-grade zones focused within breccias and intrusions.” While not as encouraging at Boda results it indicates they may be closing in on higher grade zones (there was Mo in hole 30).

While hole 31 higher grades took the limelight there are other quite positive aspects of this announcementwhich may have been overlooked.