Ann: Trading Halt, page-35

Hi Guys,

Just dropped in after reading the announcement.

RR, no - sorry I am not privy to information about the CR as I am no longer a shareholder. Whilst I still have material gold exposure I decided not to continue my BDR investment in the 2H last year.

Whilst I truly hope that this CR is for growth opportunities as some are suggesting here, I think that the last QR paints a very different picture:

- Poor head grade fed into the mill relative to expectations (anecdotally 2.2g/t targeted from conversations at last AGM)

- Issues with mining fleet efficiency and amount of material being moved. Regardless of the reasons (constrained pit) this has been ongoing both pre and post MACA

- Mill issues during the Quarter that reduced throughput

- Reconciliation issues between stated AISC and cash balance at Quarter end

- Upcoming capex required including Mill alterations to deal with transitional/ fresh ore and power infrastructure

- Wet season is now in full swing which has historically been a large cash drain on BDR. IMO the 2H 2016 was very disappointing in terms of cash build on the balance sheet (or lack thereof).

- Longer term the transition from oxide to transitional/ fresh ore presents recovery and throughput risks at this stage until proven otherwise

- The BRL is no longer providing a tailwind for BDR's in country costs and, if other commodities continue to recover could become a serious headwind.

- FY17 guidance provided no company specific growth opportunities - treading water. Only growth will come from generic gold price increases and if this is why you're invested, you may as well invest in a miner with a much greater production profile.

My speculation is that SJ is shoring up the balance sheet whilst sentiment is good and before Q1 2017 results are released to the market.

I would anticipate a further drain in cash from this Quarter (excluding CR) and whilst the exploration results are very encouraging I have discounted BDR from my shopping list - single mine in the jungle with ongoing operational issues and currently bleeding cash from the balance sheet.

Good luck and I hope that things are not as I have speculated.

Cheers
John