Ann: Redmoor 2018 Resource Update, page-45

The trouble here at NAE is that they keep talking a big game about fast tracking Redmoor activities and taking it production. Reality is, they are in fact quite slow. It's been just over 12 months since the commencement of drilling at Redmoor and all they have done is 15 holes and an estimated resource update. Within that time, news flow was few and far between. They have not, and did not, utilise the activities to create a constant and steady news flow, which is unfortunate and has most likely landed us where we sit now imo.

They may have stuck to their stated ann timelines, but that is hardly a bragging point with the amount of releases there were and the generous timelines they gave themselves. The conservative timelines may be a result of not not having sufficient funds to undertake the program more aggressively, or it could be due to other reasons unknown. It's still effectively just under another 2 years until even a pre-feasibility study is completed. That's not exactly a fast tracked program for a brown-field mining operation.

Redmoor is looking very likely to have more resource upgrades, which will prove fantastic for the economics of the project - even more so if a toll treatment option becomes available through WLF. This will reduce CAPEX significantly and gives us a greater chance in keeping our 50%, therefore resulting in an overall greater benefit to shareholders.

They have circa $900k+ in the bank, it's not a lot, but it's enough to undertake Redmoor activities more aggressively to create some news flow and try attract some buying interest here as any CR at these levels is not in the interest of LT shareholders. NAE probably need around $2-$4m to get through to the end of feasibility studies at guess. Neither NAE or SML have that sort of cash currently, so a lot is dependent on how these events will be handled in the future.

However, it seems market investors know that time is on their side and are happy to wait it out before taking positions. No one aspires to buy big into a stock knowing that if they need to withdraw for whatever reason, they simply can't. You buy in here, you are effectively trapped until a liquidity event occurs, and as we all know, they are few and far between. This is a predicament for NAE as many serious buyers tend to steer clear of these type of plays and you end up with the punter money only. Punter money moves in and out as it gets bored and is able to move the SP down relatively easily as there is little buying pressure and interest. Traders form an important part of a fluid market and are far more important than many LT investors would like people to believe, but without them, there is not much of a market as we can see here with NAE.

As far as Lochinvar goes, I'm really not sure. Gary somewhat hints there maybe something happening in the background - but what else is he meant to say. I take it with a grain of salt, as he's hardly going to say no one is interested. Hopefully we can be pleasantly surprised sometime in the near future.

Overall, I think the market is hesitant until it sees how NAE will progress forward with funds, be it capital raise or debt funding and whether they can eventually create some market interest that allows buying and selling more fluently. I.e formalised pathway to production with efficient timelines and news flow etc. Anything can happen in the market and it can all change very quickly - yesterdays dogs can become today's darlings and vica versa.

Next news flow - mining and processing study, future drill and met work program. Lets see how fast they move.