chairmans address & agm 2009 presentation ..., page-6

It was mentioned that TAM will spend $1 mill to increase processing capacity by about 30-40%, utilising existing reserves. This was not related to an increase to 300kozpa, which was stated to be a rough estimate, within about 3 years. I assume that exploration success, followed by a second processing plant would be required.

It was mentioned that they feel uncomfortable with the risk of only one plant. The geography of potential exploration success would indicate that multiple processing plants are a possibility.

Concerning exploration potential (note ONLY potential) it was stated that multiple Callies were a possibility, given the geography. They were very upbeat on this point.

It was stated that previous exploration activity in the Tanamai was restricted to shallow drilling. Latest data interpretations indicate that deeper drilling holds immense potential to increase resourses. Note the word 'immense' !!