Ann: Proposed issue of securities - CAI, page-15

The answer is actually no.

If it was the case, no lender in their right mind would ever lend money to miners as they would never see their money again in most scenarios of default.

The main fall back for the State Government is the MRF which was set up several years ago.

The rehabilitation liabilities at Nullagine and Beatons will be kicked down the road and assumed by the next owners.

That’s what makes the project effectively worthless from a cash sale perspective.

To gain approvals to explore or mine on the project, it will be conditional on certain rehabilitation activities to be undertaken first - not the whole lot, but some.

It is the only leverage/stick the government department has to get “some” of this huge liability, in some way, completed.

That means quite an expensive restart of mining and/or exploration as you need to budget a sizeable portion of funds to complete a token measure of the rehabilitation liability up front.

The secured creditors are in front/senior to the rehabilitation liability. I’m sure the greenies would like to see it the other way but it’s just the way it is for now.