Ann: Pennys Find Gold Mine - Lakewood Milling Results to Date, page-24

Wolca , the contract is that they lose their 40 % of the project if they don't pay . They have known since the start of the JV that they needed to pay to keep their 40 % . They do not obviously have the money or have not been able to raise the money to stay in the JV , the management spill will be all about trying to extinguish their responsibility . A part payment is a piss ant attempt to keep the joint venture . Contract law is quite clear no money no JV . This means ERL will own the project 100 % which is great for us as there is minimum $100 million of gold underground . Yes , we do not receive $1.1 million in the bank , but we do not need it . Essentially the $1.1 mil represents $3.2 million worth of value based on our market cap of $8 mil . To me it is like a massive share buy back that ERL has just received , when people work this one out our share price will increase as we now will have 100 % of the project . In relation to the under ground mine we will more than likely subby that out as we did with the open pit . These miners not only dig the hole but generally provide the funding too , as with the open pit , it is normal practice . Seargeant is an experienced campaigner and knows everything about the mining industry . The whole value in ERL was to get to underground where the real money is , the open pit was necessary to get there .