questions for the agm, page-45

hi dave,

"the board of directors haven't done anything soectacular."


oh, ok

explorer to toll treater 17k oz to circa 200k oz.

bought into TI - which is being watched by a couple of biggies.

Offer by SH to put in $225 million. Whatever else happens, that money will open up a lot of quality ground in a spectacular fashion.

Fantastic ground position, world class geo's.


Hmmmmm, nothing spectacular eh?

And yes there is a lot of consolidation activity at present ------- and what does that suggest to us all?

How about just possibly that most of the sector is way undervalued --?

And why would an entire sector be undervalued?

How about because the market is wrong?

How about because the market is pricing miners thinking gold is worth about $1000 and not almost $2000.

At this stage I am voting yes - and I definitely don't want any board changes.

Everyone votes the way they want and everyone either buys sells or holds.

The responsibility lays with the individual shareholder.

for me - I can't see a better board around. I also very much like a lot of our staff.
I love our assets - and we have those assets because our board and staff picked them and did the deals to get them.

I cannot see one other gold company I want to be in - sure there are a couple of other good ones - but boy you pay a premium.

The way I see it is this.

Massive exp. with SH as a shareholder.

No more liquid than before - SH will not be selling any shares.

The company is a lot bigger.

Exp. success will create great damand for the shares - and there won't be any more on market than now.

SP should rise.

Even is SH have ideas of full ownership - they will have to buy the rest - the one's we hold -------------- with success in the field, the price will be higher (assuming no pog collapse).

SH cannot spend the money and get no results - and from what they say, they want to explore.
If they buy other ground - then we are bigger again.

All this assumes that they don't do what they say - and if they do do what they say - our board will run the show.

Our board have made no secret that they want fml to be big - and that takes money.

Nothing to 17k, 17k to 200k - now 200k to 500k..
Now to develop Nepean - which was what fml was all about not long back.

Where to next?

SH owning 100% ------------- fine - the price is up to us.

And that's the worst case.

Best case - SH sit in the corner and our blokes run the show - give dino a large bucket of money - dino gives a few buckets out to his exp. geos. Chuck gets a few mil. to buy a few jewels - stranded deposits, which he has had in his back pocket for years.

As soon as we have proved up more resources and reserves - advance production - big time - no worrying about where to get the money - we already have it.

Worse case - we win.
Best case - we win.

No vote ------------ uncertain.

Pretty simple for me.

have a great day

Pinto

btw, I have always said that majors wouldn't be interested in any of our projects bar potentially TI and Nepean - because they want size - they don't want companies - they want mines.

However, I might rethink that if Phung gets her bucket of money to drill like mad.

It is possible - just possible - but getting more probable every day - that Coolgardie will be the project -------- the whole of Coolgardie ---------- one big project.

If she can get the drills going and prove Chucks ideas - just maybe the whole thing will stand up by itself - hmmm, now that could interest a few people.

But boy if that happens they would have to pay a premium - especially if we have a friendly SH partner sitting in the corner. In fact if I am reading SH correctly - they mightn't get it at any price.