Ann: Variscan Mines Sydney & Perth Roadshow Investor Presentation, page-21

The Cons for VAR
- JORC estimates are exactly that... an estimate...
- They will need a raise with only A$1.3M remaining

The Pros for VAR;
- EV only A$2.7M for a mining lease an extensively mined mine with limited infrastructure
- Zinc LME stocks are low and new supply is not coming into the market
- Brownfield is good

I think a reasonable comparison is to AZI (ASX), which has slightly higher grade but lower tonnage compared to the VAR estimate... AZI had a takeover offer first, then a A$103M funding deal to get their brownfield site into production, funding supported by Appian... AZI now have a A$30M market cap and after draw down of all funding will hold a 35% interest in the mine... So the A$103M funding represents a $150M valuation for the mine of similar size and similar grade to the VAR estimate....

They key is VAR getting the $$$ to drill it out and get a JORC compliant resource.