Ann: Annual Report 2017, page-14

Hey MI,

You are right on some points.

- Cannon UG not a company maker. But.. a real net positive, and could keep us afloat for another 2 yrs or so, to allow for more organically generated exploring and the proving up of our other many prospects (SK and AUS).
- Management options - "Here's a thought - let's make the granting of options contingent on real, tangible, bankable success in SK ??" and "Credit where credit is due, incentives where incentives due - no brownies for POTential stories - SMTM !" No arguments from any shareholder I would expect. 40 cent options is simply snouts in the trough...Most disappointing thing I've seen from otherwise good management.
- SK: I see this as Gubong, and then everything else (at this stage!).
- Gubong - massively prospective. Surface anomalies are irrelevant here imho. It is the low hanging fruit, and by low I mean in the 50-100kms of the underground system where we could find a treasure trove of still very extractable, very low cost gold. And the tailings dam/area could also hold plenty of ounces at low cost.
- Everything else in SK - yeah a little more doubt regarding Weolyu and Kochang, so far. But it does seem like it is way to early to have any firm conclusions here. Also it is in the ring of fire territory, and it takes time to locate and distill the very best locations. Same is true everywhere.

Here's hoping for some good drilling news.