Ann: Greenfields Gold Discovery at Yandal West Project, page-38

Hmmm...where to start with your daily dose of reality?

GTE own 80% of Harris Find not 100% so bear this in mind when you chose to gamble your hard-earned coin. The ownership detail appears glossed-over in today's report possibly because of the sweetheart arrangement with the original owners of Harris Find who have close ties to GTE and are well-positioned to enjoy a bit of a risk-free ride with GTE's drilling budget.

Based upon new drilling results released today, an optimist might infer:

2,000m (strike) x

10m (true width) x

100m (open pit depth for 10m width) x

2 (density (oxide+saprock+bedrock)) =

4Mt @ ~1.0 - 1.2 g/t Au.

The industry average Market Cap per Resource Ounce is presently ~$40/oz. On a good day, GTE's "discovery" should translate to a ~$6M-$8M asset based upon 130-160 kozs of inferred low grade resources (albeit containing a higher-grade core of 80-100 kozs) and therefore the company's 80% share of the asset is worth approx $5M-$6M.... NOT $70M as promoted by the MD verbally at the AGM???!!!

Ridiculous to call this "large-scale" based on these results and investors should be cautious of the company's historic tendency towards hyperbole. The goldfields are littered with small, unmined, 100-200 koz deposits with insufficient grade or tonnes to warrant a standalone mining operation.

Encouragingly, there appears to be some narrow, "small-scale" higher grade material (2m true width) forming ~20% of the total volume with better grades of 4-5 g/t that could be selectively mined to a slightly lesser depth.

Hard to imagine the disappointment of those who bought in today at >3cps valuing the company at a market capex of $24M when the full value of the prospect is clarified by more drilling. All the drill metres and award-winning geos in the world are unlikely to increase resources at Harris Find given that the area is entirely subcropping, well-defined by geochem and the old timers who have picked away at this spot for +100 years probably haven't missed the mother lode.

P

PS Geologically, the host stratigraphy is nothing like the dolerite at Jundee/Bronzewing/Wiluna/Golden Mile/St Ives so be wary of the uneducated comparison made by knowbs.