agm next wednesday, page-2

Proposed options issues:

1. Mr Quinert - 4.5m options - 8c strike - expiry 30 September 2017.

"Since the departure of the Company’s Chief Executive Office Mr Grant Ferguson in January 2011, Mr Quinert
has taken over the responsibility for overseeing the day to day operation of the Company which duties have
significantly expanded in size and complexity with the acquisition of the Derewo River Gold Project. By fulfilling
this role Mr Quinert is enabling the Company to defer the need for employing a full time Chief Executive Officer."

2. Mr Hains - 500,000 options (same terms)

3. Mr Savage - 2.5m options (same terms) - joined the board on 12 October 2011.

"Mr Savage plays a key role in the management of the Derewo River Gold Project having been intimately involved in all governmental and regulatory issues involving the Derewo River Gold Project over the past three years as well as working closely with the Company’s Indonesian partners."

4. Already done to consultants - 5.5m options (same terms)

Mr T. Neale - 5.5m options (same terms as above)

"Mr. Neale is the geologist heading the Derewo River Gold Project and, in this position, is a key person to the
Company’s prospects for developing this asset."

Mr T. Chapman (via a private company) - 2.5m options (same terms)

"Mr. Chapman continues to play a key role in the development of the Company’s profile and investor relations, and assists the Board in overseeing and
implementing management decisions."

So, my questions - why such a small strike price and why such a long time to expiry - almost 6 years.

Not aligned with the existing listed options in terms of expiry date....where is the sense in that? Where is the motivation?

Disappointing.