Ann: Drilling Commences at Blue Billy Zinc Prospect, page-54

Hi everyone,

I was a bit sloppy with my past couple of posts - the beauty of posting from a mobile device. Thought I'd clarify what is know / what I've inferred, and why I'm excited. DYOR of course.

Firstly, liquidity has jumped (significantly) this month. Based on the possibility (likelihood?) of two of the six irons being pulled out of the flame for next stage evaluation. 43Mn volume for Oct to date vs. 13Mn Sept; 8Mn Aug. (Sorry, the screen shot from IRESS didn't work.) Volume ahead of 0.03 is 1.5Mn (low) (note: the phantom 1.2Mn @ 0.022 was in and out today). Deliberate trading strategy being played out. Good luck to the trader - well played today.

Onto what the market knows re: timing and macro story:

1) Zinc - Edmund Basin WA (Billy Blue): 5th Oct - Assay data for the four drill-holes are expected around the end of October. Geochemical indicators will be identified and vectors to mineralisation determined once all the assay data have been received. Macro story: Zinc has doubled in price over the past two years; analysts predicting price plateau despite demand (slightly) outstripping supply)

2) Nickel Copper - Norseman WA (Jimberlana) - 17 July 17 - HPEM surveys extended following encouraging results from initial survey. Drilling? to commence in November 17. Sept 17 - Drilling proposal will be prepared for S32. Two months in: proposal must be close to having ink on it?? Macro story: Nickel has halved in price over the past few years to be bouncing around its lowest in 10-15 years?; though positive outlook given china demand story, global electric vehicle story and china supply side restrictions coming through - meaning more demand; less supply. BHP recently weighed into the debate - wanting greater exposure to nickel through WA expansion. Nickel (and lithium) exposure is the place to be in my opinion. Copper: not my space. Anyone comment?

3) Nickel Copper -Fraser Range WA (Balladonia) - Sept - EM survey results to date have highlighted at least four areas where in-fill surveys are required to better define targets ahead of possible drilling. A drilling proposal will be prepared and submitted to South32 once all surveys have been completed and results fully assessed. No ETA to market's knowledge - could/should be within CY.

4) S32 constructed a $1mn, 0% interest rate for 24 months, unsecured facility to kick things along. Nothing drawn down as at October. Under the alliance, there is a bonus of $500k when three exploration targets commence - this is in place for three years.

5) From Annual report - AQD is 'working hard to ensure that several new projects become part of the Alliance activity during 2018'. With a 6m-12m lead time for exploration targets, if they are true to this, something could/should be around the corner soon. These could be the copper/gold tenements that were applied for in Peru - Puite and/or ramp up of activity at existing nickle/copper in WA - Wiluna

6) Convertible notes isn't a surprise. It was done this time last year. Recently, there was an announcement deferring the conversion requirement to Sept/Oct next year?