A quick summary:Main expenses were exploration and evaluation at...

A quick summary:

Main expenses were exploration and evaluation at A$4.9 million, and administration relating to operating activities at A$0.7 million, for the quarter.

Offsetting this was proceeds from issuing of shares from options at A$5.8 million, and various smaller amounts from interest, sale of equity investment and return of cash from environmental bonds, totalling A$0.8 million.

The net result is a small cash gain of A$1.0 million for the quarter, leaving the company with A$28.9 million in cash.

Estimates for the next quarter indicate a doubling of exploration expenses to A$9.7 million. I don't think that indicates a doubling of current exploration, rather the doubling has already occurred (since about April) but perhaps the bills won't become due until the next (ie the current) quarter.

There is no way to judge how many options will be exercised in the future. The last quarter was unusually good, with the options exercised being quite high and completely offsetting the exploration costs, with a bit left over. This almost certainly will not continue in the near future.

At one end of possibilities, the next set of options expire 11 June/1 July 2010 and if all are taken up will provide A$0.45 million. At the other extreme, if all outstanding options are exercised EXT can raise A$2.8 million. This is only about 30% of one quarter's exploration budget at the current accelerated rate.

Therefore, in the worst case where no further options are exercised, EXT has enough money to continue exploration at the current (very) high rate for another three quarters. This takes us through to April 2010. Even if all outstanding options are exercised within the next 9 months, it will not materially change this outcome. This assumption is based upon a continued high rate of exploration for a solid 9 months.