brierly confirmed, page-3

Hi Aksier

I'm a long time holder and increased my position substantially once the GFC abated.

Whilst the overall return for shareholders is disappointing there a few things to look at.

1. GFC came at exactly the wrong time for CSE and a bit hard to blame management for that.
2. In share capital terms the company is 3 to 4 times greater than at the float

The issue has been that CSE is a micro cap company as such the Australian banks will not touch it. It is one of the main reasons that Australia struggles to compete internationally but that is another discussion.

The Copper reserves are fairly large but low grade (1%) so a lot of earth has to be moved to recover it. This obviously increases the OPEX of the project. A plant would need to be built to process the ore and the cost of this is increasing with each year as Australia struggles to contain costs. In close proximity to the Copper resource are areas with Lead and Zinc that are a fairly good grade. These areas need further drilling/ investigative work but probably hold substantially more reserves of Pb/Zn/Au etc.

The option with most blue sky is to build the plant and go it alone. Whilst many will argue the point, this option could deliver better than 30-40 cents per share.

However the lack of finance has made this impossible and no one else is willing to do a reasonable deal, so you play the hand you have.