Ann: Operations Update, page-57

Very much looking forward to the Farm Out. Will there be enough to cover the 12m$US for the Horizontal for IW2 permits and cement lined well bore in place. They now know the target area and the vertical well bore sleeve clearly has the upper zone marked. Will they go in at 90 degrees to the well bore, or angle up/down, there is a some leeway there. Going side to side on the lateral gives way more leeway.

Should Farm out come in. I cannot see the sp below 6cAus. Should Winx be a winner the SP may never see 6c again, an important figure.

The last time the SP went above 6c the Options due on or before October 2021 started to be converted. I would not be surprised to see a larger scale conversion coming in, adding in Xm$US into the bank account. Some options will get held back in anticipation of Q1 2020 Conventional drills. De risking will be normal to those investors who took them up in the US.

This will supply additional funding prior to SOA year end, may cover a lot of the land lease expenses without having to rely on the SOA rebates. Add the Winx drill rebate of 1.2m$US and liquidity is looking less and less of a concern.

I do not expect the SOA to give us the rebate, any time soon. Dw did say he was not relying on that figure, nice to have it and clear the nil debt facility.

Horizon looking clear for good sailing, ice sailing.

AVB