Ann: THICK HIGH-GRADE DRILL HITS CONTINUE AT SOUTHERN NIGHTS, page-39

Hi Farmdownsouth

The funds were raised by MOD at $0.30 per share. Whilst this was a 36% premium to MOD's last traded price ($0.225), it was a significant discount to MOD's recent trading range ($0.35 - $0.50). At the time of the raise, MOD was trading at 2 year lows. Therefore I don't believe your comparison of raises MOD vrs PEX is valid. 

Re PEX management, we can all argue until we are blue in the face about how good (or bad) they are - there is no definitive answer and everyone is entitled to their opinion. No doubt Rob has made an error in overpromising and under-delivering on the schedule for the MB study and this is not ideal - having said this, it's not the end of the world and hopefully in the future Rob will err on the side of caution and under-promise/over-deliver. Besides this, personally I believe PEX management is performing reasonably well - buying back the royalty in my opinion is a no brainer, the current strategy of aggressively drilling SN/WT is correct, retaining their 50% share of MB is correct etc and I have confidence in PEX management.