Ann: Annual Report to Shareholders, page-2

I continue to be pleased with the management and performance of SRZ and, support the reappointment of Dr Whiting as a director in accordance with resolution 2 of the Notice of AGM.

As the company moves forward, however, I would like to see further discussion from the board of the various means/methods to continue to fund the development of the Heemskirk mine.

Resorting solely to Listing Rule 7.1A as a means to raise more funds may be convenient and simple for smaller companies, but is not the only means to do so, particularly where there are an abundance of smaller shareholders who may be willing to invest further in the project.

Existing shareholders may be able to invest up to a further $15,000.00 each pursuant to a share purchase plan.

Alternatively, the company may go to the broader market to raise funds for the continued development of the Heemskirk mine. Such shares would, of course, be available to purchase by the existing shareholders.

The company may also consider debt options - although I concede that it is too early for the company to take on debt.

I hope that further discussions concerning the variety of options that are available to raise funds are discussed in greater depth at the AGM and/or in further releases by the company.

On this occasion, I will not vote in favour of Resolution 3 and I urge other small shareholders to do likewise.

DYOR