Ann: Update on Cuervo Resources and Cerro Ccopane, page-2

re: Ann: Update on Cuervo Resources and Cerro... If the MD pulls this off then he is worth $400K pa in my opinion.

This would mean that SRK can commence drilling again. The combined resources currently stand at about 360mt and this deal should give a far better than average chance to build the resource base over the following 20 months (until the cash runs out) to above 600mt which should change the game. And that's not including Apurimac.

You would like to think that SRK is in a strong position with a loan to Cuervo held by a mortgage and Curvo having no funds available and maybe no place to get funding at present.

Would be the better sense to combine the companies. I would guess that the deal would entail a wiping out of the debt plus some SRK shares to preserve the cash balance. Plus the Cuervo shareholders I would assume would want to stay in the game.

Fingers crossed that they can come to a suitable agreement.