Ann: Half Year Accounts, page-8

Hi Underdone MM and all,

I do hope you are correct in regard to a cheap takeover as it is definitely something I would not wish to see. However; it still bothers me why progress to full production is done at glacial speed at best.

I have run a private business since 1981 and all I know is that if I was in control of the company I would not hesitate to spend the $2M for additional production and I would be breaking my neck to get those gold grades out of the ground.

As you mention the long-time shareholders, I admit to a niggling suspicion that the delays to production and subsequent share price may well be providing a buying opportunity for those with the inside running. It will be interesting to see if those long term larger shareholders have increased their holdings when we see the next annual report.

I wonder if once the boys are all set, if the flow of information will gather pace!

With the Australian Gold price around $1,550.00 and a well-rested experienced mining team and such Bonanza grades I see no reason for a six month ramp-up to take over nine months!

To reiterate maybe I’m being too cynical then again I have been around a long time and have seen many strange things in the mining industry even geologists falling out of helicopters!

I still hold my view that we will see higher Gold pricing at some point as a result of all the money printing, also if the RBA cuts rates on Tuesday we could see the AUD @ $0.75 fairly quickly. On top of that after our next desperate budget I wonder how much longer Australia will retain it’s AAA rating. Personally I don’t find an AUD $2,000.00 per ounce price at the end of the year all that inconceivable.

Cheers and very best regards: Andy