Ann: September 2019 Quarterly Activity Report, page-16

Re the 1.365 Mill. This is usually the case when you are borrowing from the sharks. If you apply for a loan of $200,000 privately sourced say throught solicitors and the like charging 10% interest. All you receive in cash is $180,000 that is an amount net of the interest payable. If the term was for 12 months at the end of the term you have to repay the whole $200,000.

The note by Ian Riley in the September quarter's report states that the Cash and Cash Equivalents held as at the 30/9/2019 reflects this 1.365 Mill.
I would like to know just where has he shown it, all a can see is cash on hand and bank overdraft which is of course negative. Where was the 1.365 mill included. Looking at the reported movements in cash and equivalents can anyone see where he has actually applied this money or shown this figure? I am finding it a little difficult to see.

Other than Management, I do not believe anyone knows the exact terms of this finance agreement. I recall I read that principal and interest was to be repaid in 12 equal instalments after the drawdown of loan funds. What does that really mean? From the latest report we are already making cash interest payments to someone. IMO this was never the best finance deal on the table, it was actually the only one on the table and BSR was lucky to get it. The finance was only achieved by putting up as security every worthwhile asset BSR either owned or had an interest in. These assets whether tangible or intangible have only been acquired with BSR shareholders' capital contributions since 2008 some AUS$78 million. These assets apart from having now been transferred to MGO, have now been used as security to finance another AUS$17.33 million. All together some AUS$95.33 million and apart from some alluvial gold production way back when, for which BSR still reports a contingent tax liability of some AUS$18 million BSR has not produced one more ounce of gold and no one knows if it ever really will. How much more time money is it going to take to get Pits 2 and 1 into production and how much more money is needed just to keep BSR functioning until then?

Of the loan funds of AUS$ 17.33 (US$12.2 Mill) announced as available on the 3/1/2019, only approximately AUS$2.4 million (US$1.63mill) is reported as being left according to Management's Report to Investors of 15/10/2019. Not a lot when considering present operating and finance costs are running at about $450,000 per month. On the plant upgrade front what further capital needs to be spent to get it up and running? With all the new plant still not on site, actual construction of the upgrade may not have even commenced as yet let alone the time it will take to commission it.

Maybe I am worrying about nothing, but I am concerned about BSR's short term liquidity going forward.

For the past 3 years I have always believed BSR's survival not success, was primarily dependant on it producing gold and generating some life sustaining positive cash flows. There is nothing I have read in any of Management's recent reports and updates or media reports that convinces me that production is still not months and months away. I only hope they can continue to find sophisticated investors to keep BSR afloat and cover their continued lack of performance until that time. I for one would like to hear what they are telling these so called sophisticated investors to get them to invest these hundreds of thousands of dollars. It can't be the same garbage they continue to feed me and the market. Look at the SP.