grossly oversold, page-22

EddieHarris

Thanks.

I recommend that you talk with PIR to get the full facts. I would not want anything that I have written to be wrong or an incorrect interpretation of the situation in relation to the FMZ deposit. There seemed to be two issues, one was to do with some data that could not be substantiated and would require further field work. I do not know how many ounces is recoverable if they undertake the field work to verify past data.

The second issue relates to some parameters used. I am not a geo and have no technical expertise so I cannot comment on this. However, it would be interesting if someone with such expertise were able to comment on the parameters used in the estimation of the JORCs of GRY, AMX, and AZM when compared with what Snowdon has accepted for PIR's resource. I think a key parameter revised down relates to the specific density factor preferred by Snowdon.

I am hoping to see further information on the divergent views of the recent resource estimation in the next quarterly report and possibly in the broker reports.

It should be noted that the average grade for the total resource would have fallen well below 3 gms/tonne even if the original figures for FMZ had been maintained because FNE (1.92 gms/tonne) and FSE (1.37 gms/tonne) are lower grade deposits.

I expect the POG to continue to rise (and hopefully outpace the rise of production costs) so perhaps at some stage even a relatively modest deposit of 1.5 to 2 million ounces at 1.76 grams will be economic to mine, if should that not be the case already. I have idea how ounces there in this area of PIR's tenements and their average grade.

TGZ operates in Senegal and will be producing around 200,000 ounces in 2014 using ore at an average grade of 1.71 gms/tonne, cash cost of $USD663/ounce and EBIDTA of $USD59m (rising to $USD111m in 2015). TGZ needs to find more ore or they will cease operating in 2018, just about all the profits having been eaten up by high funding costs and silly hedge payments to MacBank who got them hooked during the GFC.

See page 28 of TGZ presentation for details. http://www.asx.com.au/asxpdf/20110208/pdf/41wn6h4cy3vhxb.pdf

I hope Alan Campbell shows some leadership in addressing the issues. There is no point hiding behind press releases.

loki (wish I had some relevant geo training to get a better
handle on things)