Ann: Charley Creek REE Project Moving Forward , page-5

Ausheds,

I hope you are not suggesting that I agree that mining the alluvium fan is not finacially viable because you know I will disagree. IMHO I can see a very good profit subject to finding a purchaser for the product CUX plans to produce. That is a challenge I believe all HREO producers outside of China will have to face.

My belief is strengthened when you take into account that there are some areas in the alluvium fan with head grades 20X greater than stated in the JORC estimate (0.03% to 0.6%). This is very relevant if the size resource is large and CUX can cherry pick the areas to mine and it would appear this is the case.

The above higher grades are even more relevant when one considers the area used for the JORC estimate is so small and does not appear by the map in figure 4 to be the best area in the alluvium fan for TREO results. Simple though unreliable extrapolation of the indicated and inferred resource of 5% of the resource 235,000T of TREO gives an order of magnitude of TREO resource around 4.7 million tonnes of TREO (235,000 x 20).

I think PEK is claiming to be the 5th largest TREO resource in the west with about 3.8 million tonnes, but I could be wrong on this because it is a figure taken off the top of my head.

There is a further thought, the TREO's in the alluvium fan must have come from a hard rock source. The question becomes is/are there still a hard rock resource/s and if there is/are can it/they be found?

I agree with you, still a couple of challenges for the management of CUX to deal with, but I feel they are approaching them in a measured and methodical manner.

As always I suggest any potential investor should do their own research before making the decision to invest in any company.

Cheers