re: Ann: Appendix 4C - quarterly ended 31 Mar... From BSM's half...

re: Ann: Appendix 4C - quarterly ended 31 Mar... From BSM's half Year:

BSM shows the Mill and Tailings Dam as an asset in its accounts and its estimate of the present value of the royalty as a "Contingent consideration" in current liabilities.

Note 14 "(b) Assets pledged as security

Under the terms and conditions of the secured bank loans, the Group has granted a fixed and floating charge over all of its assets in favour of the financier. The charge remains in effect until the Company has fully discharged its financial indebtedness; including the settlement of outstanding zinc, lead and silver derivative instruments."

As such, unless the accounts and notes to the accounts are wrong, the mill and tailings dam would be used to pay outstanding debt and the outstanding royalty would rank just as another unsecured creditor. However, it is always possible but unlikely the notes and accounts are wrong.

Regards

SP