Ann: Gubong Project - Bluebird Merchant Ventures RNS Released, page-40

Well according to bluebirds annual report! come April this year, bluebird merchants will present its findings on the gubong gold mine to southern gold and the 50/50 joint venture will be formed! This should give investors and the market a indication of the potential valuation for gubong, because currently there isn't one! If the capital expenditure for re-opening gubong comes in at say 10 million Us and our shares 50% of that! We will need to come up with 6.3million Aud to fund the re-opening of the gubong gold mine at a maximum( I think it will be less than that, more like 3-4 million Aud initially) . Sau currently has 4.6 million cash at bank and after this quarter that will be say 3.8 million at bank! So how will we come up with the money to fund the Gubomg gold mine, will we either have to do a small capital raising, get a debt facility or possibly pre-sell some gold at a cheaper price ! Or we will somehow be able to fund the project with current cash reserves and the royalty from cannon (I doubt it) ! Just my thoughts (we need more money in the bank, god knows why they paid a dividend!) cheers ST.