Ann: Additional Funding for AusQuest, page-6

To rowscoe

Consider salary of five staff plus office expenses which is very high by any standard. AQD is securing $750,000 loan facility which is not enough for any drilling program in future. Having loan facility without any revenue stream could be disastrous for AQD.

Think with a fresh mind, what AQD achieved is the last 10 months. AQD received cash of $650,000 via farm-in agreement in June 2014 Q that was not used for any exploratory purposes but rather spent on mere administration. I believe that large sum of $750,000 loan facility will be spent on admin.

Even if AQD goes ahead with Peru porphyry drilling what is the success rate. There are many companies such as PRA, ICG ... they have been drilling for years where they stand now.

I will leave up to you judge in current low commodities price environment