went to the agm

Hi All,

Went to the AGM today and this one needs some serious light shed on it.

Firstly Ken Allen stated that when they first got Kookynie they approached a number of mills in reasonable trucking distance to the pits for the purpose of toll treating but none were interested. So thats how the heap leaching direction come about. The heap leaching got put on hold because at the beginning of the year NAV and AAM approached NME about any interest in using their mills for toll treating. Given the price of GOLD and the relative low up front costs the toll treating is the better option. The heap leaching is now only going to be used for ore with grades of .25-1 GPT.

He also stated that the AAM mill is running out of ore and next year they'll have at least 6mths full time access to the mill that may reach out to 12mths.

In respect to funding, enough funds have been raised to start the mining and a rights issue is around the corner to raise additional capital. Not sure how that will go taking into consideration of the last attempt at raising cash.

Listening to the GEO, cash thats hopefully raised from the tolling will be used to drill and fully evaluate what they have on their leases. Its expected from a geological logically point of view that some of the pits are actually connected via one gold mineralized structure.

In respect to their own treatment plant down the track Ken advised that they have a $15mil financial appraisal already given to NME in a draft format for a 700k ton plant PA.

Mining is starting in Jan next year and from there 1500 ton per day gets transported from Butterfly to the A1 mill.