approve the placement i say, page-14

Hi Pinto,

You have certainly done much better than FML at explaining a potential cost breakdown and associated use of the funds. Why on earth can't FML possibly provide this to us? Calculating 227.5M is worth 51% of the company is one thing, but the board must have also agreed on the use of the capital in definitive terms one would assume.

Essentially, we are a looking at a potential 24 month time frame (realistically), based on what you said happening, actually happening. Personally speaking, I had pencilled in $90M on exploration over a 12 month period.

I wish we could get some surety around Barrick. That, I believe, is 100% essential to get to those ounces in that stated time frame above. If that fell through, then where to next?

I am still of the expectation that FML will be cash flow positive this quarter, and all quarters moving forward based on their own operations and expect that the $227.5M will be actually be able to be used as you have stated below. To add to this, if we apportion all exploration costs to come from the $227.5M, then we should be generating some nice cash as is based on the fact that these costs were previously an issue dragging our cash down and are now essentially funded from a different bucket.

On a note so bright note, Sharpie and others will have a field day from the Jan Q next year onwards if this takes off. Our actual quarterly report is going to show massive negative cash flows as we chew through the 227.5M. If this deal takes off, then we can probably forget about a cash flow positive quarter till 2014. Focus will need to counter this with more regular production data, forecast profitability and an absolute truck load of resource updates. There will be no guesses of whether we generated cash or not, because it simply won't happen.