Ann: Positive Redmoor Study Results & Re-commencement of drilling, page-25

Some indication of how much money we may need in the next 12 months:

5000-10,000m drill campaign

If 664,000 pounds covers 4000m that gives a figure of 166 pounds ($292Aud approx) per meter, but that probably includes other costs such as mobilsation, assay costs, consultants etc. Approx cost for DD is usually around $200 a meter give or take a little so the previous figure is reasonable.

Using the max possible meters that equates to around $2,900,000aud for the drill campaign alone, assuming assaying and other fees are included.

So using maximum drill meters for 2018, we need to come up with potentially up to approx $1,450,000aud* for drilling to maintain our 50%.

* This does not include any metallurgical testing costs, feasibility study costs, corporate costs or working capital required for general expenditure.

I'd like to see maximum drill meters drilled, as more meters means potentially a larger resource and hopefully more tonnes converted to indicated resource category which will provide a greater confidence in numbers when the feasibility studies commence. But it obviously leads us down a path of greater expense.

In the past we have leant on RCF for financial support, so I find it intriguing that this has not been the case this time. I'm not sure what that means, whether they are waiting in the background to take up an offer of a CR or whether they have withdrawn support from operational funding in a lending capacity. Who knows, but it is interesting - if your into that sorta stuff.