Ann: Progress Update , page-10

Hi PM,

I'v had a couple of communications with Martin Phillips and have found him very appreciative of shareholder feedback.

To summarise, the number one priority for BNR at this stage is to keep increasing the JORC as much as possible. The more resource, the better the deal we can do with the Banks. The Board is very upbeat about the potential of the whole project which has been emphasised by their own investment.

If the Gold price remains healthy, and we are able to sure up some more resource (which looks likely), the Banks should offer us a fair deal. Project Pay back of around 2 years would see some solid cash in the bank in quick time. I won't be at all surprised to see these guys announcing a Finance arrangement late this year/early in the new year, and first Production in 2013, which would be nothing short of brilliant in the time frame given.

Every announcement that comes out in the meantime which indicates more ore reserves makes the above more certain. A Cap Raise may be needed to accelerate the drilling/increase the resource, but if the Gold price keeps increasing, which also looks likely, the Project should pass the Banks lending criteria even at the current levels. Lots of positives with this little minnow!!