Ann: Commencement of Processing , page-21

The orient well laterite is 0.5 gt. Butterfly is 1.1 gt.

Refer http://www.asx.com.au/asxpdf/20110801/pdf/4204bsq7rgl4ll.pdf

But Butterfly has higher grade shoots in it;

“The Company is also pleased to advise of encouraging results from the grade control drilling in the Butterfly Pit.
- Hole BFGC0279 – 8.65 g/t Au over 6 metres
including 22.3 g/t Au over 2 metres
- Hole BFGC0273 – 7.72 g/t Au over 5 metres
- Hole BFGC0268 – 4.82 g/t Au over 7 metres
and 3.85 g/t Au over 2 metres"

Refer http://www.asx.com.au/asxpdf/20120202/pdf/4244hxz20bbsnl.pdf

Also my previous back of the envelope calculation was not correct – I noticed the following in the last quarterly report;

"Minecomp Pty Ltd has carried out pit optimisations on thirteen additional deposits within the Kookynie Project. This work has used a $1,600/oz (AUS) gold price defining in excess of 3.5Mt of ore with an average grade of 1.46 g/t Au. This allows Nex to forecast approximately 5 years of production for the planned 700,000 tonne per annum Orient Well Carbon-in-Leach mill"

http://www.asx.com.au/asxpdf/20120131/pdf/4242lvmyt5572q.pdf

Based on this my back of the envelope calculation changes as follows;

700,000 tons through the mill at 1.46 gt brings in approx 36,000 ounces pa. With cash costs at say $1,000 an ounce (nex has said $875) and a gold price of $1,600 brings in profits of approx $22m pa. Not considering recoveries etc

So good upside in the shareprice.....potentially....and this DOESN'T factor in increased grade...increased gold price etc

These are just my thoughts....please DYOR !!!!