dfs, page-2

I should have also added the following to my previous post - an excerpt from the 2010 Sept Qtr Activities Report (reported 27 Oct 2011). It confirms that something has gone astray with the drilling since then.

"On-going drilling will both enhance the grade and definition of the existing drill-defined resources at the Ross and Barber production areas and continue to convert areas of mineralised potential into JORC-compliant resources. Given the combination of a larger database together with increased level of resource confidence Peninsula has scaled back the level of drilling at Ross and Barber and will still be in position to convert the majority of the Inferred Resource material to Indicated Status, such that it can be considered for conversion to a reserve as part of the Definitive Feasibility Study".

Strata had 17.1m lbs of Inferred Resource at that time. The conversion of 1.8m lbs of it falls well short of the "majority" forecast in the Sep 2010 Quarterly.

Unfortunately, we have had no explanation as to why.