hill end update

Hi all,

With the best will in the world it still took me until now (3.45pm NSW time) to get the chance to phone Philip Bruce. As I had expected there is an update in the pipeline and the company is very much aware of shareholder concerns.

I expect we will see another update reasonably early next week and hopefully it will address some if not all of our concerns. My conversation with Philip was quite brief but we did manage to cover quite a bit of ground. No inappropriate disclosures though as you would expect. I will give the update my usual once over as soon as the ann is released.

There wasn't time to canvass all of the issues I wanted to raise and I wouldn't have been expecting answers anyway. I will email the company with a list of issues and concerns both positive and negative. Here is my starting list and I will be pleased to add other sensible suggestions.

OPERATIONAL ISSUES

Ore treatment plant capacity? effects of upgrades? timetable for improvements?

Number of access points to Paxtons, M2, other orebodies? Mining rates with current workforce?

Alimak lifting capacity? (I think this may have been published already) How does actual capacity compare with design capacity?

How much ore is actually being treated? What are the grades? How do these grades compare with predictions?


CONCEPTUAL ISSUES

Ore bodies can be high grade but veins are often very narrow. Decision needs to be published on whether the intention is to continue mining Paxtons/ Hawkins Hill via narrow vein mining or bulk mining.

Obtaining funds from the market has become very problematic. Decision could to be published on the company's plans for generating revenue via mining activity.

Exploration has been a major focus and mine development has been increasing in significance. Now the company is moving into production. The company could publish its policy regarding the relative importance of exploration, development and production over the short, medium and longer term.