Ann: Promontorio Resource Estimate Completed , page-13

Drill results at Promontorio released by the company were exciting but the initial JORC isn't as its only 1/2 the size of the historic resource estimate. The chances of an economic resource at Promontorio have diminished but not disappeared altogther.

The farm in argreement with JOGMEC La Tortuga & Los Nidos is positive in my view as JOGMEC must see potential in these 2 areas.

The problem for AZS is they are now low on cash and with a dispappointing JORC announcement for Promontorio they have to either bring in a partner or have a cap raising at a discounted price. In addition they have regular payments to make on Promontorio to maintain ownership. Considering the last cap raising was a failure at 12.5 cents I can't seen how they will have a succesful cap raising so it looks like dilution at Promontorio is likely and I wouldn't be surprised to see JOGMEC as the farm-in partner.

Worth continuing to hold IMO but the excitment has disappeared.