Ann: Quarterly Activities Report and 5B Cashflow - December 2021, page-2

Project is progressing well (better than last ann) but hiccups continue and a mix bag of positive and negative points.

Positives that have been sorted:
- Finalisation of the wharf design and requests for tenders issued for construction; and
• Finalisation of the tailings system detailed design with requests for tenders issued for construction.

The project is going to grow a lot more and recent drill results show that:
080KUL159 with 29 metres at 7.6 g/t Au:
• 080KUL158 with 31 metres at 6.7 g/t Au;
• 080KUL172 with 50 metres at 4.6 g/t Au;
• 080KUL173 with 44 metres at 4.7 g/t Au; and
• 080KUL171 with 41 metres at 3.9 g/t Au.
A further 18 holes (1,200 samples) were awaiting processing in the laboratory. This is going to show the project is a lot bigger. Are we going to see the results before getting screwed by refinancing? That's the big question!

Negatives:

Sprott is the biggest beneficiary of that awful agreement that in my opinion should be broken. Sprott clauses of delay penalties even when funds were not drawn was a very bad idea for the company. and they are happy with delays and probably wanting even more equity on the project. My take is Pay Sprott the waiver fee and find a better lender like Wheaton on better terms.

GPR can take the time to fix the project. 6-9 months delays in construction in this environment is not the end of the world. The gold is there and there are A LOT more GOLD there to be found.

Keep moving forward the project at its own pace and derisking it/adding more value with exploration.

Biggest items like SAG mill are ready. it's just a matter of civil work and other minor thing that can be achieve in 6 to 9 months if the right team work on it. PNG not the best place to attract talent in the middle of a pandemic but we are turning the corner. it should only improve from here.

This mix bag of information is the best scenario for a takeover... mix of positive and negative information, etc.

I wouldn't be surprised if it is taken over before trading again.

Santa Barbara or other producers must be on the data room?

It would be stupid to miss an opportunity like these and making an offer for a company with $110M market cap before an updated MRE and FS show a huge NPV. Next 3 months are going to be very interesting.