Ann: Section 203D Notices, page-32

There is a real lot of infighting going on now within BSR and MGO Boards, so do not be surprised if what you think maybe happening one day turns out not to be so the next. I hope something constructive happens sooner than later, but then again, we have been hoping for that for some time now.

Whoever finally ends up with the reins I hope they have a lot of money or access to same as BSR and MGO's total debt is now getting close to 35 million AUS$ with bank and other loans accounting for about 22 million of that. As for finishing the stated plant upgrade, the cost of the equipment still needed, the dismantling the old and construction and commissioning of the new plant if achieved in 7 months will require about another 11.5 million AUS$. That is just to get to production.

Prior to production another 10 million AUS$ or so of working capital is likely to be needed to get MGO through the first quarter of production.

How credible is Mincore's bankable feasibility study looking now or for that matter Mackenzie's stated financing requirements? Thank goodness the gold price is where it is and here is hoping it stays there for the next 12 months. Although a drop of 207 US$ an ounce in the last 6 months has not been good news.

Let us hope who ever ends up getting this salvage job get their act together quickly before the Administrators finally step in. The longer it takes only makes the present financial crisis even worse. It is reminiscent of BSR's journey to gold production. Apparently, we have all the time in the world. Just be patient it will happen eventually. Let us hope MGO's financiers and creditors feel the same. I equate the present situation to watching someone slowly bleed out and given the circumstances you find yourself in, there is nothing whatsoever you can do in time to stop it.

I doubt, I have a dream Mackenzie will be able to do it without selling out BSR shareholders even further. Not having any real or transparent info re his new plan involving NEI (the Chinese connection) I believe it could be just another step in the same direction to save his own persona. In my opinion he has managed to get BSR and its subsidiaries into a financial crisis of such depth that a white knight, if one can be found this late in the show, may not be able to save the day for BSR shareholders. No doubt the sharks are out there just waiting for the bait ball to fully form before entering to make a killing.

To be honest, I am now not sure what Mackenzie's real agenda has been or presently is, but based on his performance and actions to date I now have no doubt it was not only what he was feeding BSR shareholders and our joint venture partners.

I have heard that the present turmoil in the MGO Board may relate to the disclosed facts and transparency of Mackenzie's new plan. You should all be aware of Alex's failing in this regard by now. Apparently, the joint venture partners WATIC are hesitant to sign off on the proposed deal concerned that if it goes pear shape down the track, they could end up losing whatever interest they still have left in their land. I suggest a legitimate concern on their part after all the past undertakings they had been given by Mackenzie. If that is a possibility for them what do you think the outlook for BSR shareholders would be in that event?

I apologize for all my expressed opinions, beliefs, hopes and doubts in the above. My only excuse is, given the information that I have been provided by the Board of BSR during the past 2 years this is all I really been left with. Although I am quite sure the camp security fence was completed, I just cannot be sure when. The only certainty I have now is it is not looking good, anyway you want to look at it.

No doubt for the majority of BSR shareholders this whole fairy tale remains a total crapshoot.