Ann: Seymour Resource Confidence Increased ahead of PEA, page-2

Surprising movement today, its almost as if the market had no idea where the drill rigs have and have not been lately. There's been minimal drilling information out of Seymour for ages so there was never going to be a big MRE update till the rigs start hitting the good stuff. There was a possibility of defining Blue Bear as a 3rd small inferred resource but that wouldn't assist current goals.

The current goal would appear to be pre-announcements in relation to the scoping studies. I'm presuming the scoping study is only going to use measured and indicated resources in its mining plan so the focus of activity has been shifting ore from inferred to indicated so it can without question be used in the scoping study. A big part of this work was done down at Root Bay with the infill drilling, but there's a bit more that can be done at Seymour and this announcement is phase one of that additional work. It shift 0.9Mt from inferred to indicated allowing indicated to increase from 5.2Mt to 6.1Mt. That additional 0.9Mt that can now be used in the scoping study as either a longer life of mine or as higher throughput. Both of these options will improve the NPV that is going to be reported soon.

It looks like they ran out of time to shift any of McCombe to indicated so that will be some followup drilling work that will assist the DFS to look better than the scoping study.

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