Ann: Appendix 3B, page-32

To get project finance AVQ will need a feasibility study. To a JORC compliant feasibility study they need to do more drilling and increase the confidence of their resource at San Jorge to at least Indicated Category. That will take a few million in drilling, money they don't have. Keep in mind they still have not released the Inferred Resource from the drilling they announced back in March 2017. The Mining Lease was not the big issue for AVQ. Yes, they needed it, but they have to seriously progress San Jorge with more drilling and they don't have the money to do it and RM now does not seem to be able to raise the funds either. The current finance agreement just keeps pushing the share price down and does not give them enough money to do a decent drill program which is what the project needs. In short they are stuck between a rock and a hard place. Somewhere they need to find someone who will finance the project without needing a proper Feasibility Study. Maybe the Chinese?