13. Given the disclosure in the PFS Announcementthat “this...

13. Given the disclosure in the PFS Announcementthat “this analysis determined that the discounted cash flows
fromthe indicated mineralresource could not offsetthe capital expenditure and hence was unable to support the
reporting of a JORC compliant ore reserve”, does HAW consider the study constitutes a Preliminary Feasibility
Study in accordance with the definition in Clause 39 of the JORC Code? Please provide the basisfor HAW’s view.
JORC Section 39 States:
“A Preliminary Feasibility Study (Pre-Feasibility Study) is a comprehensive study of a range of
options for the technical and economic viability of a mineral project that has advanced to a stage
where a preferred mining method, in the case of underground mining, or the pit configuration, in
the case of an open pit, is established and an effective method of mineral processing is determined.
It includes a financial analysis based on reasonable assumptions on the Modifying Factors and the
evaluation of any other relevant factors which are sufficient for a Competent Person, acting
reasonably, to determine if all or part of the Mineral Resources may be converted to an Ore Reserve
at the time of reporting. A Pre-Feasibility Study is at a lower confidence level than a Feasibility
Study.”
HAW considers the study constitutes a Preliminary Feasibility Study as so described. The JORC Code
definition does not require that, in order for a study to be a Preliminary Feasibility Study, it must
conclude that all or part of the Mineral Resources may be converted to an Ore Reserve at the time of
reporting. As per the above definition, the Preliminary Feasibility Study determines if this is the case
so may reach a positive or negative conclusion on whether all or part of the Mineral Resource may be
converted to Ore Reserves at the time of reporting.