Re:Ann:Trading Halt, page-20

Hi rbrave22

The buying of the royalty is a very positive development. The reason this occurred is because a Canadian based royalty company approached MMG to buy the royalty and PEX then exercised it's pre-emptive right to by the royalty from MMG. The fact that the royalty co approached MMG is bullish (they obviously see value in the royalty), as is the fact that PEX determined that it made commercial sense to exercise their pre-emptive right and buy it from MMG ahead of the Canadians. Had PEX not exercised their right the Canadians would have secured the 2% royalty, which IMO will be worth significantly more than $3.3 mio in cashflows over the life of the Wagga Tank/Southern Nights project.

As for all the critics of the capital raising:

- Management can't win - I recall when fund were last raised in Nov 2017 (at $0.40 when market price was $0.45) there was significant criticism on this forum that Management was pricing the CR too cheaply - I remember thinking at the time that $0.40 was an excellent outcome, based on the fact that PEX shares had been trading around $0.20 in the months before the CR. 100% premium to recent prices and shareholders still weren't happy!
- Management doesn't have a crystal ball - the share price is largely determined by drill results. Had recent results been outstanding, the share price this week may have been $1.00, in which case the CR would have been done at a significantly higher price than $0.36. This is simply beyond managements control, they don't know the drill results months in advance to plan CRs around drill results. Now, I can imagine some of you thinking, well hang on a minute, why didn't they do the raising when the share price was higher around $ 0.80 in Jan 2018? Well, I'll tell you why - firstly, the funds weren't required then (they had just done a raising in Nov 2017) and indeed the raising would be have been implausible for subscribers (no logical reason for a raising). Also, had they done a raising and had the price subsequently gone to say $1.50 on excellent results, Management would have again been roundly criticised for doing a raising too early. As I say, they can't win.

In a similar vein, Management cannot manufacture drill results. They are routinely criticised for lack of drilling results and announcements - and I admit I share everyone's impatience in this regard. Having said this, if there is nothing significant to announce, there is nothing significant to announce. We just have to be patient and wait. During these times the share price almost invariably drifts lower on small volumes as weaker holders lose patience and sell.

Ultimately, the share price will be determined by drilling success and the associated size, grade and attributes of the deposit. I have faith in Management and I think the business is in capable hands. Having said this, they cannot control what's in the ground. I'm hopeful and confident that it will turn out well for shareholders, but like any exploration investing, it is high risk and there are no guarantees.