Ann: Quarterly Activities Report, page-3

Short term concerns for me in this quarterly:

1) Flagged a potential delay in KI restart with Kimberley wet season

2) No low grade material sales

3) Expected fall in IO prices over the next 12 months

Longer term positives:

1) Cash balance broadly in line with my expectations at $430 million

2) KI a couple months away from KI restart regardless of the Kimberley wet season

Overall:

I would expect a pull back in the MGX share price to around 55 cents in the next month before a sharp rise to 70 cents once KI resumes production. Please note I have a negative short term view on global markets and commodity prices.