Ann: Quarterly Activities Report to 31 March 2012, page-2

re: Ann: Quarterly Activities Report to 31 Ma... After reading the quarterly I jumped on the phone to Dean Richardson to ask a few questions.
1. WRT to the resource upgrade timing I asked what his definition of "imminent" meant. Answer: 2 weeks to be announced about the same time as the capital raising conclusion, and probably before.
2. WRT to the delay in both events this is the explanation. Resource upgrade - due end of last year but due to changeover in consultants, timeline slipped as new consultant had to go through it all again. Capital raising - after MGO had submitted short form prospectus Canadian authorities requested that the 43101 be updated to include the new resource estimate. As this was not finished this caused the delay in finalising the capital raising.

He did say that demand for the raising was high after PDAC hence the decision to strike whilst the iron was hot, but caught out by Canadian regulatory authorities re new resource estimate.

Nevertheless, all should be complete within 2 weeks. DFS still on tgt for mid 2012 and EPC towards the end of the year. As far as I am concerned, satisfactory explanation for both delays.

Above is a summary in my own words derived from notes taken during our phone conversation. For more detail, pls call Dean. He's very amicable.

Cheers,

I hold MGO