cloncurry meeting and tour

Because everyone is anxious about what happened here, the following is the Q&A from meeting/mine tour. Yes it's that complicated, some things you needed to see for the answer...

1. Why have DSO and early cashflow been mentioned for 6+ months without a timeframe nor a quantity?

A. Real soon, ore sorter tested, need enough Ncu, (that's what we are looking at for first DSO) next couple of months. Not enough ore stockpiled to keep the (forgot which machine) 50t/hr going for long enough. After we left the pit on the tour, the digger started digging what we were looking at, at the RL 195 level. The best is another 20 metres deeper along a 1.2km strike and 40-50m wide.(please correct me anyone else who went there, so much info so quickly)
$80m worth, machinery should be going next week or so.

2. The real question is what average grades are being achieved in month 10 of processing and in month 20.When will the mine get going with processing?

A. Hopefully commissioning will happen by June/July. Management still talking high grading first couple of years. Thinking 2.5-3% from various conversations, no exact figure. Maybe someone else has a better answer.

3.What conditions are being asked for on the loan? Why is the loan from Minsheng taking so long to finalize, are their any uncomfortable default clauses or conditions?

A. Loan a done deal, hopefully not needed. Waiting on Australian legal stuff(eg lawyers taking too long). Security over lease, equipment etc.

4.If you could ask if the grades are exceeding what the RC drilling identified in the native copper zone?

A. Yes, absolutely, by a long way. Mine manager picks up a chunk of Ncu and states this is the 2% of this cubic metre, so what is all this other stuff lying around? Some places many times the official grade, as in a magnatude higher.

5. Can the company separate out the cuprite and if not, how does the presence of cuprite in the NCu affect the marketability of the native copper?

A. Easy separation, cuprite goes on remaining high grade ore pile. Cuprite will crush to small particles, Ncu as flattened pieces goes on from first crushing, ie complete separation, not an issue.

6. What is the time line and capex cost for the rail now the J/V partners have scampered? What is the timeline and capex costs for the port facility?

A. $25-30m for both, timeline 12 months, discussions with others (no details) for 50% of port. Others had different figures in discussion last night, but that's off my notes from meeting. DSO can be transported by road train as soon as available 74t/load, looking at 98% Ncu as first DSO, so transport not an issue cost wise.

I think that covers most questions, could others please jump in if I have had a poor memory.