expanding upon the srk valuation

When SRK did their initial valuation of LCY's share of Mt Bevan, they used a preferred valuation of 48c per tonne of contained I/O.

They came up with $104.5m for LCY's 60% based upon the following:

- The then existing JORC of 590mt @ 31%
- A 40% chance of Phase 2 meeting the 1.5bt resource target

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Since then we know that Phase 2 was successful and we got:

a. 1.6bt @ 30.2% giving us 492mt of contained I/O

OR

b. 2.26bt @ 27.6% giving us 623mt of contained I/O

Now that is what we have at this stage. Lets use the 492mt Inferred JORC, as this is what we've all been quoting.

So, if we continue to use SRK's 48c per tonne, then Mt Bevan has an intrinsic value of $236m

HAW's 40% stake is $94.5m

HAW's market cap is $27.7m

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Now that doesn't take into account anything we get out of Phase 3, nor does it account for any DSO.

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Whatever happens over the coming weeks and whatever the conjecture, lets remember these figures. After all they are derived from an independent report.

GLAH