Germans are interested, page-53

Bungey Report of AGM on 26/5/16 ( Looks like it will be deleted in a week or so....)

Shareholder – Just talking about the possibility of increasing our shareholding in the project,
Panmure Gordon mentioned in their report that the finding of the 404 threw a little bit of a
spanner in some of the discussions. I’m worried now about tinkering with kimberlites before
this issue is dealt with, and whether it’s a high risk – obviously we all want to find the Holy
Grail but if we do, forget about increasing our shareholding?

SW – Look, it’s always a concern – I don’t see it as a major issue right now, but certainly
do I think that we may not be able to get a larger stake? Of course there’s a possibility,
but if you have a look at the development – the old mining code required ENDIAMA to
have 51% of a hard rock mine. The new mining code, does not have that requirement
anymore. They do take smaller chunks. If you look at Catoca, they’re only taking 32.8%
chunk in that. If you have a look at the new Luata mine that they’re building, they’ve only
got a 30% stake in that. So they already have set the precedence that they’re taking
smaller stakes. At 51% is fine, it’s only exploration right now – they can have 99% if
they want. When we find the pipe, when we motivate the development, when we bring
the $100/150m – whatever the size, it’s a tier-1 mine, it’s going to be massive investment
that country, we’ll go, here’s the cheque, but where’s our stake? So, we’ll have the
opportunity to negotiate, just not now.