Ann: Quarterly Activities Report, page-29

Heard this all before. Too many promises and estimates but it's the final numbers that count and Cobar is no easy place to mine and make money. Compare the area to Mt Isa-McArthur River or Cannington or even the tailings Zn resource at Century and it puts our little deposits in perspective. Mining is a license to burn money just as much as it is to make money. With the huge Zn resources out through the Mt Isa region, the volume we produce from Wagga Tank will be small change for Sun Metals and our concentrates will need to make a bit of a round trip. CBH is the natural customer for our production and precious metal credits are the key to success. Deposits through that Cobar region tend have plenty of depth extent, but on the eastern and western margins of the basin structurally-controlled sulfide lenses are not as persistent and can occur as an irregular series of ore bodies. Talk of volcanoes is irrelevant to this globally recognised mineral style. So far our Wagga Tank and Southern Nights drilling has not proven we have the depth below 400 or 500m and therefore constraining resource size. Hopefully this will change with more deeper holes, but for now be realistic with the assumptions and the talk of loads of cash