dfs, page-99

Karlos,

You have a point - but so do the others.

I suspect that the reasons for the delay are a corporate view (that of the newly constituted board) of what is best for PEN in terms of the content and timing of the DFS.

This 'new' view has probably taken Gus a bit by surprise, so he has taken time to latch on to the 'new realities'.

With the talent on the board, I am sure their strategy will be the optimum one for shareholders. I am confident of this.

But there is still the issue of expectations and PR management. There were essentially 3 options available to Gus re the DFS and other milestones:

1. Remain circumspect, make no forecasts and therefore do not generate expectations
2. Provide detailed guidance on timelines and deliver on them
3. Provide detailed guidance on timelines and fail to deliver on them

Up until April, Gus was squarely in camp 2 - and we all loved him for it.

Since April, he has been much more in camp 3 than camp 2 (although there has been some excellent permitting progress).

He can easily move himself back to camp 2 by providing updated guidance. He should do this.

The reason he was prompted to forecast DFS delivery in 10-15 days all those days ago (36 now!) was because of the widespread frustration already existing - with the DFS already 3 months late despite the littany of 'soon', 'shortly' and 'imminent' guidance.

I am sure that Gus is an excellent manager in many ways but this has been a PR cock-up.