Value, Grade and size of inventory, page-3

Mustang Resources, flawless balance sheet with no long term debt in its capital structure, which unfortunately it now needs in some form as the cash flow potential of the Special cut and polished rubies has fallen through for now. We have funds for 2 months but require another 4 -5 months minimum to take through past the October auction process process with possibly 200,000 carats to sell. Mustang has also made a spectacular high-grade graphite discovery at its 80% owned Caula Project (License 6678L) along geological strike of the Syrah Resources world-class Balama graphite project in Mozambique with a maiden JORC Resource scheduled for release at end of Q2 2017. Asset rich but short term cash flow poor at the moment. Let us see what the board can do do to get us out of this short term concern. This is what boards have to do.

Since May 1st over ½ billion shares on ASX have changed hands and add to that Chi-x and you probably have ¾ billion. A turnover yesterday on ASX of 25 million is not overdone as it showed some resilience while we worked it out and analysed the pattern. If we settle in the low 4s today that would be an important move while we wait for a voice.

We'll see what happens if its basic fundamentals have inner strength.

GLAH