Is BRB a good investment?, page-4

December 2018 Quarterly Report(copy of entries)

Pre-Feasibility Studies – LakeRoe Gold Project. The Company is running a dual strategy at Lake Roe, namelyongoing aggressive drilling with four drill rigs targeting rapid Resourcegrowth and upgrade, and concurrent PFS activities targeting an early, largeopen pit development.

The timing on the PFS will be dictated by the need to establish the overalllimits of open pit mining – drilling continues to discover new areas of shallowgold mineralisation thereby increasing the size of a potential open pit. Themain priorities of the drilling are consequently identifying the outer limitsof open pit mining, to allow finalisation of the PFS, and expanding the 1.1Moz#Resource, particularly where open pit mining potential is apparent. Deepreconnaissance drilling is also underway to assess the long-term, high-gradepotential at depth. Early results, as summarised in the quarterly report, havebeen favourable. Breakerhas appointed several consultants to progress the PFS.

March 2019 QR

Highly successful quarter sets upBreaker move to Resource update in preparation for PFS

PFS on a Phase 1 open pit expected to be finalised two tothree months after the July 2019 Resource update

June 2019 QR

Breaker set for pivotal quarter withResource update later this month, Pre-Feasibility Study (PFS) expected in \ September and new drilling campaign ramping-up

PFS well-advanced,targeting low-risk, high-margin open pit over 2km-long and up to 250m deep; PFSset for release in September 2019

A PFS is well-advanced and will assess several processing options, including a standalone gold processing facility with a throughput range up to 2.5million tonnes per annum (mtpa). The aim of the PFS is to identify the best options for monetising the project that provide the greatest return to Breaker shareholders and stakeholders.

September 2019 QR

Following the receipt of severalunsolicited enquiries from corporate and other entities, Breaker commenced astrategic review of the Lake Roe project to assess all options to accelerate the unlocking of itsvalue. The strategic review is considering a range of potential partnering, funding and other asset initiatives, with an emphasis on maximising shareholder value. As the results of the strategic review have the potential to materially affect the inputs of the pre-feasibility study, the PFS has been deferred.

My Take

BySeptember 2019, BRB would have significant knowledge of what the PFS was goingto deliver and after saying it will unlock value they provide a very weakexcuse as to why it has been deferred. The only conclusion I can draw is thePFS was going to deliver very poor outcomes and they decided to continuedrilling. Based on their claims of a 1 million oz resource, surely it makesmore sense to prove up a Reserve which would add value if it is as prospectiveas they claim, ie comparisons to the Golden Mile etc.

My viewis BRB had something to hide by not continuing with the PFS and have not beentransparent.

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