what is npv., page-16

So All,

With Ex-Yank's insight, how do we think the story will end up considering GFA one year mark is a few days before the AGM.

1) They can take over CQT before the one year mark and therefore dont need to continue with the JV.

2) They can walk away.

3) They can accept to continue with the JV and satisfy the requirements to obtain 51% of the JV area.

4) They can accept to continue with the JV with or without further drilling until they take us over within the two years.

Option four is the most likely but Im not sure how GFA will handle it given that there are so many options here. This is because the more they drill, the more they increase the resource but the more they need to pay because until they complete 150K meters of drilling, they are really only drilling for CQT. They will need to make a call about where to spend their money-on a takeover or drilling, knowing that they own nothing until they drill 150K meters. As time goes by, CQT might get their act together and start increasing the MC resource instead of just infill and small step out drilling. This will also work against GFA.

I personally think that GFA will make a bid for CQT before the year mark or very early into the second year. They may want to drill a few meters to sure up some targets but not too much.

Vic.