Ann: Quarterly Activities and Cashflow Report , page-4

Hi Rab

MGY does have a number of options other than a CR to meet its EGZ obligations eg:

1. sell the EGZ shares and raise approx $2.0m; and/or

2. reduce its 25% holding in Molo to say 15%; or

3. off set say 25% in the 100% owned MGY graphite to EGZ; or

4. if any of the other MGY prospects have potential accept a JV with a cash payment.

It will be interesting to see if, collectively, MGY management has any business acumen that will conclude a deal without exercising the easy option of having the shareholders contribute more funds.

Cheers

R1