Ann: Starts Pre-Feasibility Study for DSO at Bekisopa, page-13

I've been thinking about this, and a raise is inevitable.

The only question that needs to be answered is how ambitious Paul wants to be?

My personal opinion is the company should raise the absolute minimum to get the PFS completed.

We already have a 200Mt resource, turning it into a 2Bt resource won't shift the share price. At all.

Look at Hawson's and Macarthur, massive resources, but somewhat stranded deposits because the cost to go mining is prohibitive.

All that the people who'll ultimately pay for this mine to get into production care about are:
- the permits (which we don't have, bit there are expectations for the mining code to pass into law this year)
- high confidence on development costs (which we one of the best and most reputable companies working on), and
- the amount of money to be made (of which there will be plenty - especially if the price stays above $140 USD/t).

Coming back to a possible raise and subsequent dilution.

Let's say there are 100m shares on issue, fully diluted.

Raising another $1.5m @ $0.15c would result in another 10m shares. It's not great, but hardly catastrophic.

Raising $80m to go mining could take any number of shapes, but I'd hope that we'd have a binding off take with some sort of pre payment or underwriting of loans.

30% equity and 70% debt would result in $25m - $30m in new stock being issued.

$30m at $0.50c would result in about 60m shares, which would take us to about 170m shares. Again, hardly catastrophic, especially with the low costs and high margins.

IF Paul feels compelled to drill more, focus on drilling out the green steel resource in the southern zone and prove up a regular and green steel resource, and leave Satrokala until we need it - which we can do with minimal dilution at a later date.

Perhaps Paul would sell part of the Bekisopa project, but we'd want to have a really good understanding of the resource and grades.

There 10 - 12 months before the PFS will be completed.

The mining code is all that matters, because as right now this project is as stranded as HIO and MIO.