Ann: Quarterly Cashflow Report, page-2

So here we are two and a half months on from a 3 million dollar raising to contribute to a 'high impact gold exploration' program and we are still left in the dark regarding what exploration the company actually expect to undertake using those funds. Maybe it's just me but I see absolutely nothing high impact about any of this. The company committed to a 3-stage 23,oom AC drill program of which they have completed 1-stage for 7,000m thus far. Moreover, they have nearly halved there planned exploration expenditure for the next quarter which is certainly a worrying sign for me.



For a company drawing analogies to Timmin's Gold Camp style structure, they are certainly not backing that with any perceived confidence in their approach. I fully appreciate having a large bedrock anomaly to work with as a result of the phase 1 drilling and trying to refine targets so money is not wasted on unnecessary drilling at target 15a however they have another 6 high priority targets that were flagged for drilling as part of the program. Why not maintain the momentum and relocate drill rigs while CSA do their thing with the PCA and spectral analysis? I'm guessing that Matt and co have finally realised that the cash burn associated with trying to simultaneously run combined development and exploration projects as a small cap company is simply not sustainable. 18 months ago there was more than 4.5 million in the bank and here we are now after two more 3 million dollar raises and our share price has halved despite the company making significant progress. The purse strings certainly appear to have been tightened though as per the latest Appendix 5B and that could be the rationale behind this vague statement contained in the Quarterly regarding the Yamarna Project.



I always had the impression that the company was trying to prove up the southern tenement adjoining GOR with a view to selling it off to fund further exploration on the remaining tenements to the North. Now I'm not so sure, maybe they are looking at spinning off the Gold Project or chasing a JV partner to do the exploration so they focus on what they do best being Potash. Either way it would be really nice to see some progress or at the very least some better communication regarding whats actually in the pipeline for Yamarna.