Ann: Large Porphyry Copper and Epithermal Gold at Kadungle NSW, page-17

I have empathy for the long termers in ERM and see how easy it is to become jaded by holding an exploration company for so long. However, perspective is all about timing. For instance any holder who entered ERM in January 2016 would be delighted with the increase from 2.8c to 12.5c. Even those who entered ERM in early May this year would be happy with the increase from 8c to 12.5c I'm sure. There is a moral to the story about buying and selling shares in exploration companies, but if it is not already obvious then that can be told another day.

Anyway, ERM will not get the big re-rate until a large and economically viable discovery is made. ERM has 2 x great prospects under exploration right now, Edna Beryl and Kadungle; but more target drilling is needed and certainly much more resource definition drilling will be needed.

Furthermore, ERM has a global JORC resource of 900k oz gold, but it is scattered across smallish deposits. Individually none of them are economically viable for large scale mining hence the small mines tribute scheme that ERM has developed. That is good business by ERM; but as far as the market senses they are difficult to understand and not exciting enough alone to create SP growth.

So the bottom line for ERM rests with the big questions about whether they are on the pathway to making significant discoveries. That is whether Edna Beryl will be defined as a significant IOCG discovery and/or Kadungle will be defined as a significant Porphyry/Epithermal discovery. Either one of these discoveries being confirmed will cause a big re-rate for ERM. That is the risk reward scenario facing shareholders at this point in time.

All IMHO DYOR etc etc blah blah.

Cheers