Ann: Trading Halt, page-41

The main issues (as I see them):

1. With a cash burn down to 2Mil from 3Mil Brazilian Reals ($800k per month -down from $1.2Mil per month), Do we have enough cash left to NOT BE at the mercy of the discounting brokers?
2. How much of the JORC has been mined AND processed?  Even at today's prices, the JORC gold is worth $3.6 Mill dollars (2200 Oz x $1635 = 3.6Mil).
3. NB I know we can't bank on $3.6Mil  (the JORC is all inferred) ...but this is a far cry from the 442 Oz $720,000 that we have processed (up to the end or November).
4. If we study the JORC map carefully, we can see that:
   • Zone A (or the northern section) mostly has 5 g/t or less,
   • Zone B mostly has between 5 and 50 grams per tonne
   • Zone C mostly has between 5 and 100 grams per tonne (one area even higher)
     • So based on this:  Surely we should cease all expenditure in any areas except high grade areas -until we can pay our way.
5. We need to adjust our modus-operandi AWAY from the idea that 'we need to spend what we need to spend' ...to we must find a way of producing a profit USING ONLY THE FUNDS AVAILABLE
6. Paradigm shift in thinking required ...we need to go from 'We tried and it didn't work' to we will make it work -what ever it takes.  Go through expenditure with a fine tooth comb and cut out whatever is not essential to short term income production.

• Is this some sort of elaborate coverup regarding the previous 60% discount (IDK -bit if it is -they have me fooled).
• Can we not rely on the JORC MRE?  If that is the case -spit it out and tell us now.

I don't know what is actually going on but we have a crisis of confidence, we need to know where the gold is and we need to be profitable NOW please.

We hear the expression "drive it like you stole it" ...how about "manage it like you own it".  We need a sense of urgency -bordering on ruthlessness -cut out the management excesses and the gravy train.  That's all got to go.

Craig (and the board), this potential cap-raise is your mandate to 'drain the swamp'.

We the shareholders, hereby confer on you the imprimatur to take control of legacy issues (get rid of any leeches) and secure the future of OGX -we are depending on you.  

Our major shareholder Joe Pinto has the same personal goals as us, and I am confident he will be doing his best to instill this sense of urgency, which needs to filter down to all staff -even to the lowly paid miners hanging off the end of our air-drills (the ones doing the work).  If we go broke the jobs are gone too.  

According to the Sertao JORC, we have $20.7 worth Mil of gold in Oxide ore (I guess this is close to the previous mine pit surface) and a further $80.5 Million of gold in sulfide ore.  This will be an underground mine and there is no doubt much planning to do, but it is also a very conservative grade (considering the previous 25k tonnes at 25 g/t already mined).  Even though most of the prize will go to Anglo, further exploration will surely be in the 9.5 Mil that they have already committed.

Have we really leveraged off this resource to the max possible ...in order to help our near term cash-flow?




Yes ...I'm starting to get angry.

SJB