Ann: Quarterly Activities Report , page-4

Goldfinger,

You are correct, availability of funding will be a key issue for HAV this year. While HAV may face a funding hurdle, I see the conditions improving moving ahead, particularly with Peter Reeve driving the process.

Risk adverse investors, volatile capital markets and the high risk associated with any resource development (in HAV’s case because it is the first mine) are some of the key reasons why it will be a hurdle.

I am sure Peter will find different ways to attract funding for Portia: partnerships and project finance arrangements being the most likely. IMHO, HAV should stay away from the hybrid financial instruments!

The larger question for me is whether the Board has the relevant experience. I want Directors who have some development scars and have learned lessons from past projects. We still have to have that entrepreneurial spirit but that does not mean taking large risks, it just means problem solving and looking at things in a different way.

Even after funding is put in place for Portia, HAV will need to continue its prudent cash management as well as continually focusing on minimising costs.

Once Portia is in production, the perception of HAV is likely to change, and more funding options are bound to open up as a result of having a stable business operation (albeit short lived) for the other projects (such as Kalkaroo).

Cheers

P.S. Apparently the glass is full (50% liquid/ 50% air)!!