Ann: A4 Assays Confirm Expansion Potential for T3 Copper Project, page-21

Hi Mossberg. They had $12.8m at 30 Sept and estimated outflows of $5.5m for the quarter to 31 dec which included $0.5m for the LSE listing, $2m for DFS and $2m for exploration net of MTR contributions. They should therefore have around $7m in the coffers at Jan 1.

In the 20 Dec ann they stated they did the 20 hole A4 program for A$2.5m. Going off the drill hole data on the ann it was 10,500m of drilling so the costs work out around $240 per metre drilled which sounds about right.

I’d estimate they need at least another $2m to finish off the DFS in Q1 and a further $1m in G&A which leaves just $4m for drilling. Assuming a raise occurs before the tank is completely empty I’d suggest there’s realistically only $2m for drilling - or if you include contributions from MTR $3m. We can see the drilling in the T23/T4 area is of a much shallower depth - around 300m per hole in the first few. I think there’s enough there for a further 12,000m of drilling which using 300m a hole is 40 holes.

I think some form of capital raise is a neccisity before end of feb but I’m hopeful we can drill AND assay at least 20 holes in the area first. I am hopeful initial results will show promise and allow for good terms for a small $10-$15m raise to allow for drilling for a further 6 months whilst the DFS and mining licence application process is completed in the background. What form this capital raise comes in has me most intrigued as I think there’s a good chance it won’t be a conventional placement to sophisticated investors.