Ann: Quarterly Activities/Appendix 5B Cash Flow Report, page-34

Expenses for the quarter are too high and significant cost reduction needs to happen ASAP as well as an explanation/breakdown of these costs. I ran through the quarterly yesterday whilst some items can be explained (e.g. once off payment for fees owed for previous year), others cannot and need to be.

Expenses
- Total spend for quarter was $3.431m (not $5m as has been stated by others).

- Admin + Corporate at $1.313m is too high (even if excluding the $317k one off back payment for fees owed to TM). These costs need to be reduced significantly, e.g. 30% and this means headcount + wage reduction.

- Investments expenses are $1.82m. Need to see transparency and detail in the report.
How much went towards PFS Bunyu? Zavalievsky? DFS for downstream Anode facility? Testwork samples? other?

- Exploration + Evaluation $265k. Where did this go given no exploration activities undertaken?

Cash at End of Quarter

- Cash at EOQ stated as $5.5m

- The only positive here is that there is another $1m payment not yet received from Asimwe (as was subject to AGM approval yesterday). Hence true cash position should be $6.5m if included.

Cashflow management needs to be brought under control immediately by Prashant.