upwards and onwards, page-13

The $8mil in the bank is sufficient to pursue the planned 5000m drilling targets for 2013 Drilling OPEX at PB...AVB focus is drilling PB proving link at depth between Eastern and Western Zones and continuation of ore bodies on strike...At the AGM it was stated there are no other projects or sub-projects that will divert attention from this Corporate Strategy... The company told me yesterday this current campaign is FULLY funded for the calendar year 2013...there will be 3 to 4 rigs on site or commissioned to complete this task quickly... AVB management stated clearly at AGM and last ann. is to build global resources at AVB projects to over 1 million Cu equivalent to over 1 million tonnes...

CR via the ASX to raise additional funds of 10% share equity was passed at the AGM, as far as I know and a likely scenario...to complete the transaction with the smelter then raising 51 million for Capital Costs for plant construction/milling CAPEX at AN for 5yr LOM at 10-12k tn per annum of Conc....Construction mid 2013 and Plant commissioning 1st to 2nd Quarter 2014...At AGM MW stated on public record he anticipates there should be no further dilution required...Vale deal is on the back burner for 12 months...Vale is seriously preoccupied with 12B mine deal and 6 new board members defecting and new appointments taking place...AVB does not want nor has no intention of disturbing existing relations...any CBA on this connection accrues no benefit to AVB for the next 12 months...AVB knows Vale will eventually need to procure TN.

AVB management stated clearly at AGM there is no intention to mine DSO ore at AS as this would distract from aforesaid Mine Schedule for mining sulphides at AN... This will, IMO, be a major game changer...for AVB...with the smelter deal "potentially" in place within the 2-3 month time frame all off take agreements should potentially be settled IMO in 1 to 2 year time-frame...revenue streams will be high as Metallurgy recovery is extremely high and TCO is relatively low in Brazil of approx US$1.15 per pd for LOM at AN over stated 5 year time frame... Critically, this will boost the SP to beyond current in ground intrinsic insitu valuation of 28 cents...As the market cap grows sufficiently then Institutional Investment will occur driving the SP and Market Cap higher...Once stage 1 maiden production revenue occurs ramping up plant/milling for introduction of ore from PB etal...

In conclusion, “timing is everything”...the market will definitely be interested in seeing progress up to completion of all targets mentioned and AVB management need to stay focussed on following through on the discussed potential spoken at the AGM... I would IMHO suggest a very difficult equation...no doubt, but I am quietly confident AVB staff are up for the tasks ahead...

dyor