Ann: Pennys Find - Third Treatment Campaign at Lakewood Mill, page-20

If you go to the dec quart cash flow statement page 4. Debt owing at 31 dec is $7.665m. This is a current net debt number not the gross number. And in page 3 you see they only have $0.722 cash in bank. There has been no milling since the one in late November / December so assume no or minimum payments to blue cap up to the announcement in late January. So per their announcement on 29 jan that the amount outstanding is $8.4m including fee makes sense. (I assume some portion of the fee on top of the $7.665 to get to 8.4 ? At end of jan. If you look at activities report and calculate the Burbank's numbers (recover grade and milling cost estimates) best they could hope for is maybe $1m from Burbank's ? If you take the 25000 tonne at Lakewood and use a grade of say 6g/t ? Assume comment that improving is correct then should get $5 after milling and transport costs. Add the $1 from Burbank's and should be able to pay blue cap $6 ??? (All very rough ) But then have to add blue cap still mining so add $2.8m for blue cap production. (See page 4 section 9) So numbers (apologies slightly different to the rough provided earlier but the methodology is correct) Owe $8.4 plus 2.8 production less 6 from lake wood and Burbank's equals $5.2 still owing after this Lakewood tonnes in the stockpile.