Sitting duck, page-9

Eshmun,

"Does the PFS end up belonging to HAV."

Wanbao is spending the money on the PFS. Wanbao, at its expense, has engaged RPMGlobal ('RPM'), an independent mining consulting firm, to manage and complete the PFS work

Therefore, the PFS belongs to Wanbao.

It is not a joint venture, at this time. So there is no requirement for the PFS to be shared with HAV shareholders. Although it is highly likely HAV will be given a confidential copy by RPM (for internal use only) for checking before it goes to Wanbao.

The objective of the PFS is to provide sufficient information for Wanbao to make a decision on its future participation in financing and development of the Kalkaroo Project. Terms have not yet been agreed.

IMO, subject to the terms and FIRB approval, it is highly probable that Wanbao will buy a majority equity stake (somewhere between 51% to 65%) in the Kalkaroo Project for the following reasons:

1. Copper-gold-moly-cobalt deposit (naturally);
2. Safe legal jurisdiction (both South Australia and Australia);
3. Overall low risk profile of the project;
4. “Do ability” of the project within a reasonable time frame;
5. Strike length upside; and
6. Technical and professional excellence Havilah's people would bring to a joint venture.

ChrisCarter,

"And if my memory serves correctly, didn't take into account other potential metal revenue streams such as the cobalt or molybdenum. Happy to be corrected if I'm wrong here."

You are correct, the potential metal revenue streams quoted by Havilah Management in that 2 March 2015 ASX release do not take into account the cobalt or moly.

On page 18 it stated "It is noted that significant credits of molybdenum and cobalt are potentially recoverable from a suitably designed processing plant, but no value has been assigned to either of these commodities in the present optimisation studies or the scoping financial models."

Molybdenum, while ubiquitous in the Kalkaroo deposit, was excluded from the above resource estimate. Significant cobalt credits also occur in parts of the Kalkaroo deposit, but they too were not incorporated into the resource model. [page 12]

The flotation circuit will also be designed to extract a pyrite concentrate for cyanide leaching in order to boost the total recovered gold in the sulphide ore to approximately 80-85%. The pyrite concentrate will be retained as it carries approximately 0.28% cobalt, plus copper and gold credits. [page 17]



Cheers

These are only my random thoughts (rather than a 'Sitting Duck', my vision of Havilah Resources Limited is as a 'Golden Goose') and it does not constitute investment advice. Before acting on any information you read and before making any financial or investment decisions, you should always consult your advisor(s) or other relevant professional expert