Ann: Savannah Nickel Project - Operational Update, page-40

Well I’ve cut my losses today and am out.

Victor’s story today just doesn’t add up from my reading of it.

One has to assume todays lower guidance of 5400 assumes no further production this FY, and saying this only occurred a few days ago.

We had produced 4320 t Ni in conc. in the first 3 quarters, so we needed a very good quarter to have reached the low end of guidance.

Yet Victor is messaging that we got through 75% of this Q on track but had we only produced approx. 1100 tonnes. Were we really going to produce the rest in the last 3 weeks?

Plus if the problem is just the filter and mining is continuing at pace then surely Victor would be rushing to reassure us on this, and to convince us that as the bottleneck is in the mine this is just a deferral of the final production step. But he’s not, so this silence and the numbers convinces me that there is a smell of other problems.

When companies have such problems in my experience they are more precise as to when they happened, not “a couple of days” which I am suspecting was quite a few days ago, perhaps when the sp dipped below 10?

Another point is this together with the earlier paste problem paints a picture of a poorly run operation.

When things are going wrong the last thing we should be getting is vague and late stories that don’t add up. I have lost confidence, and only a few months after tentatively gaining it.

Good luck to all who are remaining patient.

EL