Ann: Appendix 3B, page-7

Hi Sarg , AQD has a three year Strategic Alliance Agreement with South32 till 2019.

South32 is now spending a lot of money to explore four properties of AQD in Australia and other countries. Yday South Africa has put punitive penalties on miners. Naturally all biggies like South32 will try to diversify to other countries like Australia, Latin America etc,. and so we will find South32 more than eager to support AQD with exploration /drilling expenses and the agreement already states all these terms clearly . The SAA clearly states AQD will help South32 with new properties in Aus as well as other countries. So AQD is now a Project Generator , which means the equity dilution will be very less in oncoming years and AQD will also make huge money because even in case of total take over, AQD will still hold 30 percent and South32 70 percent in any property . If you see South32 has pumped in huge money like USD 110 million in to Arizona Mining and is also likely to buy out Trilogy Metals at some point. That leaves only two cos AQD and Northern Shield Resources ( which I hold also , as it has three huge Ni- Cu-Pg deposits , one of which is under option to South32 at Huckleberry ). AQD has the mgmt depth and resources to significantly contribute to the resource base of South32 over the next many years and now is the main projects sourcing agency for South32.

I know my LT charts , if AQD performs to expectations, then we are looking at major multiplications in coming years. I have started buying today and will continue buying.

I know people have bought even at 20c and burnt their fingers here, but such are the ways of stock markets. IMO we are very lucky to enter AQD at decadal lows when it has a Strategic Tie up with South32 and has adopted the Project Generator model without explicitly saying in so many words.