Stock Price, page-138

Q,

IMO, not enough focus on exploration and again IMO not enough focus on the Cartesian gold debt (CRH).

When producing solely from Cascavel, my interpretation of the contract with CRH is that OGX need to pay the greater of 1000oz or 20% of production each quarter (and that includes production from both tailings and/or waste rock dump originally sourced from Cascavel).

In other words, the first 1000oz per quarter goes straight to CRH. Once we hit production of 5000oz per quarter, for every additional 5 ounces produced from Cascavel, one ounce goes straight to CRH.

Not a very good use of revenue when it could be used for further exploration and expansion IMO.

What I will be looking for in the upcoming quarterly is not solely high production figures. Some of the primary information I will be looking for is evidence that the plant is operating at nameplate capacity with minimal unscheduled maintenance, that the gold going into the plant accurately reconciles with gold reporting to the gold room plus tailings and that recovery is 85% or better from a range of ores.

I will also be looking for details of additional ore sources coming on stream bearing in mind that not one skerrick of gold produced from outside Cascavel needs to be paid to CRH.

This, IMO, is where the cashflow will be generated from in the short and medium term.

Finally, CRH will need paying at some point, but luckily former management left us a huge pile of gold in the tailings and potentially waste rock dump. Again IMO, that may well be used down the track to pay back the balance of CRH loan.