Ann: Investor Presentation-ALY.AX, page-11

It's only a micro cap.

It has 2 distinct types of holdings near the Peak Hill area - one for gold and one for vhms cu/au.

Vhms exploration is expensive and difficult. IGO came along in Jan 2012 (I think) with a decent deal and so ALY decided to farm out the Narracoota Formation part to it. That was a good arrangement I thought.

Early last year NST rocked up keen to get more gold feed for Plutonic. It liked Hermes and bought those tenements for $1.45m and subscribed for $500ks worth of shares as well as well as entering into a jv with the remaining gold land.

So, no expenditure on exploration as no commitment, with IGO and NST doing the spending.

With money in the bank, management looked for something else for itself. It was fussy. It took many, many months to find what it wanted, and so here it stands now.

It has jv'd with 2 very good operators.

It will have Karonie 100%.

It has farmed-in with Heron/HRR with a commitment as per the announcement and as per the Preso.

It finally has something to do and also the money to start them both off.

Does that help?

The only query is NST's probable sale of Plutonic which would have to include Hermes (100% NST) and should include the interest in the JV too, but that may not happen. Imo, the new owner would be mad not to continue with it as gold will be needed for the plant. It may even want to buy ALY's NST jv interest out.