chart observations 7.7, page-35

Lance Project Initial Resource Estimate (July 2010 PFS):

Indicated: 3.6mt @ 510ppm
Inferred: 10.0mt % 507ppm
Total: 13.6mt @ 507ppm

*Ross cut off 325ppm, Barber cut off 275ppm

vs

Updated resource estimate (June 2011):

Measured: 3.6mt 478ppm
Indicated: 7.8mt 439ppm
Inferred: 33.1mt 418ppm
Total: 44.5mt 412ppm

*Cut off 200ppm


You cannot compare the 2 by grade alone as they are at different cut-off grades. The latter resource has a cut-off of 200ppm, ie all material above 200ppm is considered. The previous resource used 325ppm. So the grade has to be higher for the previous resource as it is only considering material at 325ppm and above.

If the new resource was re-cut a 325ppm, then tonnes would drop and grade would increase and would probably be at or above the previous 507ppm average.

For in-situ leaching a 200ppm cut-off is very reasonable.