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

Well I hope you got in at a good price on RED, as it seemed to me to need a high gold price to make a go of things at their new project - their other mines were loss making. Having said that, its been over 18 months since I had a good look at RED so perhaps things have improved a lot and they may have found some better grade ore for their existing and new operations. I hope you make up your $300k loss on GPR elsewhere.

Af for GPR, its going to be some while before the full situation is revealed. I am expecting a 40-50% increase in capex cost and AISC to be revised upwards to $1500/ounce (which at current POG would still provide a useful operating margin).

I doubt that the current CEO will be trusted by the market and he probably will need to be replaced.

The main hope is for a takeover, otherwise we are going to get a 50-80% share dilution.

The Sprott debt facility needs to be terminated and new funding found, perhaps from the mob that backed WAF in west Africa. I am sure the new Chairman will exploring all options given his background in the finance sector.

One question on my mind is how much does the company owe for the existing firm commitments on plant etc.

At the rate they were using up cash GPR's remaining uncommitted $50m will not last too long, so they took the right action to scale things down until the costs have firmed up, and new finance sources have been obtained.

Some very good recent drill results and perhaps more to come - maybe this will lead to greater things for GPR.

loki