MML - London Presentation report 16/4, page-3

Hi Cncventure. Thanks.

Re licences. This was more in relation to the company's future plans re the development of a second mine at either Bananghilig or Guinhalinan in the medium term ( maybe both in due course!) The new Mining Law has been mooted for some years now but any proposed legislation Manila has lined up is yet to come fwd. It was thought this could impede development of Bananghilig in particular.

It seems the licences Medusa have provide contractural terms for development incl a royalty rate that cannot be changed by the existing government or a new government in future under international trade agreements the Phillipines are signed up to. The government could however, amongst other measures introduce a new 'mining tax' but I would say this is unlikely whilst miners are struggling as they are now .

Re dividend. Geoff reminded us that he is a large shareholder as well and is as keen as the rest of us to see the dividend reinstated asap. But the Board has decided their first priority is to get the cash balance up so that come what may wrt to the gold price, tornados, or anything else the company has sufficient funding to get over any road bumps in future and to support necessary exploration and development.

I expect the cash balance will move up strongly now going fwd, incl in Q3 and Q4 from the $13.6 million at the end of H1 but do not expect any dividend this financial year. Next year will be another matter. Capex is now mostly completed but there is the new Service shaft to be funded to mid next year ($10 million) and there will be some exploration and drilling going on both at Co-O and wider afield. We will have to see how the cash on hand figure improves, what the balance is at the end of this FY and how it builds out early in year 2015/16 .