Ann: Positive Redmoor Study Results & Re-commencement of drilling, page-28

So another elephant in the room that is interesting and worthy of note is the value that has been given to 10% of Redmoor. Should NAE not retain their 50% for whatever reason, the valuation is approx $584,334 aud for the 10% that SML would recieve.

That gives Redmoor a subscribed current valuation of approx $5,843,340 aud at it's current status. 50% was sold for $1,653,000aud (equates to $330,600 per SML 10%). So the current $584,334 represents a 75.84% increase in valuation since the inception of the JV.

An independent asset valuer, using the Yardstick Method approach valued NAE's exploration asset portfolio in 2015 at around $4.5m. $4.6m was the subscribed value in the 2017 end of year report using another external asset valuer using a similar method. That's all assets and valuations are for accounting purposes.

I'm not sure what method of valuation was used for this 10% or how it was agreed upon as there is no information given as to how they arrived at this number in the announcement, unless there is something I have missed somewhere else that says how they would do future valuations?. We (NAE) also have a consolidated investment cost of $1,674,749 in the JV with SML and a prospective resource upgrade to take into consideration.

So all things considered, is it a fair, reasonable or unfair valuation for us?