Ann: Response to Appendix 5B Query, page-9

CJTJ,

3 options the way I see it.

1. They are successful in their endeavors to acquire the Lomero project and require a large credit raising to first of all, pay the liquidators of KDL who will in turn then pay KDL's creditors. Then still have enough left over to continue with exploration. Will be one hell of a dilution with a share price of 0.001

2. They give up on Lomero, sell their 10% stake in it for whatever they can get for it, find a project and try and raise funds. Again, the dilution will be massive. And what DJC clients or soph will want to touch these guys again given the track record at, KDC, KDL and now here.

3. They run out of funds and go into administration followed by liquidation themselves. As shareholders you will get nothing and secured creditors will fight for whats left.

I also had a closer look over the 2016 half year financial report. Looks like WFE delayed taking an impairment loss on Hammersely due to the deflated iron ore price. Seems WFE's 70% interest in it isworth even less than others have suggested.

Employee entitlements on page 15 is an interesting note
also
page 17, point 8 caught my eye. "Any unmet balance is payable to KDL"
The yearly report coming up should show just how much they spent on exploration at Lomero and if any cash was transferred to KDL to make up for any shortfall in exploration expenditure for the year 1 farm in.

Lastly, interesting to note how much their "Administration and Corporate Costs" for the last quarter were compared to their projection for next quarter. $268,000 reducing to an estimated $50,000 this quarter. I wonder just how much rent they were paying to KDL all this time to use their plush city office?

57 million on the buy side down from over 90 mill just a few weeks back. Its death by a thousand cuts here, slow and painful I'm afraid.