Ann: Quarterly Activities and Cashflow Report , page-9

I will not be buying.

1. The production profile is now 1.2 million ounces to 1.5 million ounces per annum, a substantial reduction on the 1.5 million ounces to 2 million ounces forecast last year.

2. With gold at US$1642.50 and silver at US$31.70 the gold/silver ratio is 51.81

3. In gold adjusted terms this makes the production profile just 23,160 ounes to 28,950 ounces of gold a year. This does not interest me.

4. It was different when the production profile was 1.5 million ounces to 2 million ounces per annum with the silver price approaching US$50.00 and a much lower gold/silver ratio meaning a vastly higher production profile in gold adjusted terms.

5. Steady state production is not predicted until the December quarter this year.

6. Plus the company has very little cash on hand - not ideal imo if there are any more issues in the ramp up to "steady state production" by the December quarter this year.

7. With little cash, AYN is also not currently in a financial position to mount an aggressive exploration push on its leases.

8. Might points 6. and 7. above mean dilution to current investors via a significant share placement in coming months?

9. At this point in time AYN appears fully valued and there are numerous precious metals juniors out there offering much better value imo.

Kind Regards,
Siameseparrot.