General Discussion Topics, page-2678

I must say, a great run today for Perth based Bezra, which holds a gold resource in Eastern Malaysia. Price has now risen 10x over the past seven weeks, with the help of a US$300m offtake agreement with their number one shareholder, Quantum.

It just goes to show that there is life in the gold exploration sector which bodes well for our future. GBR is one of the best up and coming gold explorers in Australia, located in one of the world's best jurisdictions and most accessible and desirable districts of Meekathara. Today we traded below the recent CR price of $0.082 giving us a market cap of around $40m with more than $7m in the bank. Mulga Bill is shaping up nicely and giving us hits of more than 3 kilograms per ton with our resource set to grow to more than a million very high grade, reasonably shallow ounces during this year. We are also due to start exploration on our new and exciting ground in the Earaheedy Basin in the next few months. I am very surprised to see the price trading at this level, although the recent CR has no doubt got something to do with it and should wash through soon. There a very few if any, explorers with the quality of ounces that we have and there's plenty of potential for significant growth. Perhaps we need a partner like Quantum.

Back to Bez. About seven weeks ago they had a market cap of about $14m (353m shares @$0.04). Today the market cap is $155m (share price $0.44). They have very little cash apart from the substantial immediate monthly payments of around $10m for the future offtake, which will take a few years before they can get to production.

The big advantage of the offtake agreement is that they get funding for development without further dilution to the share register, which can hurt. The disadvantage is the discount to market plus the commission, an all up cost of at least 15% on gold production. Still, it pretty much guarantees the development.

Looking forward to better days for GBR!