Ann: Twin Hills Gold Project - Technical Review, page-19

I had a look at their cash position a few months back. They had $8.4m at end of Q1, so we will find out expenditure through Q2 soon.

• 5,000 m diamond drilling underway at Yandan @ $400/m (includes assay cost) = $2 m
• 4,350 m RC drilling underway at White Dam @ $250/m (includes assay cost) = $1.1 m
• White Dam acquisition - $0.5 m – assume covered by White Dam cash flow (650 oz predicted Q4 21 plus Cu sales). $1.9 m environmental bond… likely covered by an insurance type finance scenario (becoming more common with environmental bonds in the mining space)
• Twin Hills acquisition - $2 m. Now they have 6 months to pay, and I am very confident they will sell NVO shares as that seems to be the play with the 6 month term being included.

NVO shares, executable in September, 1.5 m shares at 2.17 AUD/share = $3.3 m (these have come off in price recently).
Plus Smartset shares, estimated at $10 m depending on how that deal plays out, held in escrow for 12 months. So leave those out for now.

All up, $6.6 m in cash and marketable securities after they pay for the drilling costs and Twin Hills. Very healthy working capital to keep adding value before another CR.

And keep in mind, now that GBM holds 100% of White Dam, they will be turning on all the tricks to start pulling the gold out of the heap in the short term. I am expecting a fair bit more gold poured than the 600-700 oz forecast for Q3.. That is going to draw out their working capital and delay a CR by a fair margin.