Estimated Inventory Value for Auctions 1 and 2 @ 12 September 2017, page-13

Evening All,

My updated recovery calcs after today's data for those that are interested.

Artisinal recoveries now average 8,264ct per week (since March).

Plant recoveries are harder to calc as the plant has increased production. Looking at ct/tonne we average 0.28ct/t based on recoveries to date. But this has increased with each announcement and was 0.52ct/t in the last week.

We have been recovering average 0.42ct/t in the last 10 weeks; which I think is a conservative estimate and probably reflects the new lease conservatively IMO.

Also, the plant has processed in last 3.6wks approx 8,770 tonnes per week.

Recoveries therefore conservatively estimated from plant at 3,684 ct per week (if not higher).

So I'll expect another 50k carats from the two sources in next 4 weeks prior to auction.

But, historical results can't predict future's outcome - look at today - totally blindsided.

Also, finally, this gives us a revised annual production of 640k carats or 320k per half. More than enough production, even prior to additional shift on plant.

On a side note, I certainly don't understand today's trading and I'm estimating one of the lowest value per carat. This announcement was a game changer; people are short sighted. I also agree with others that we'll keep grinding up. Maybe today was the re-trace we needed (albeit intra-day).

For fun, if we recover rubies at the same rate we did in the last week and a day, we'll have 4.39m carats per year.

PS - for those that were at the EGM, I got the vibe that CJ was trying hard to not tell us that Tiffanies might be there at the auction - possibly trying too hard. So the announcement of them now having Mozambique rubies in their offering was nice but didn't shock me. Did anyone else read that - he was very awkward when asked and then cited he couldn't disclose (or that's how I recall it). Certainly makes me excited for the longer term prospects.

Cheers
Capt Amazing