Ann: Presentation - Precious Metals Summit, Colorado, page-24

Hi Scott,

Takeovers aren't something the company or Richard can control the timing of, it's generally in the hands of the acquirer.

Orbis Gold was taken over by SEMFO in early 2015 between finishing a scoping study and starting a DFS on Natougou in Burkino Faso (18 Mt @ 3.4g/t Au for 2 million ounces........ estimated 213koz/annum production at an AISC of $619/oz and CapEx $234 million).

The deal was sweetened from 65cents/share to 71.3cents/share (total value $US139 million). Orbis also owned the Nabanga project, one of the highest grade projects in Burkina (inferred resources of 3.2 million tonnes @ 6.5 g/t Au for 660,000 ounces of contained gold). What a bargain that deal was for SEMFO.

Orbis was a bit like WAF. It really flew under the radar of the market. The gold sector was also in a slump at the time and I remember the HC faithful on the OBS threads lamenting the share price before the take over came.

Richard will need the support of the major shareholders if he wants to defend a take over. It's often tricky because once the offer is made at a good premium to the prevailing share price there is a perceived (and real risk) that the share price will slide if the takeover falls short. The pressure is usually on shareholders to accept and often the big holders will indicate their intentions early which puts pressure on the smaller holders to capitulate. Also it is very difficult for the directors to recommend to shareholders not to accept if the offer is well priced in relation to the expert valuation (ie judged to be fair and reasonable). In the absence of having a controlling interest the directors end up being forced to recommend the offer. Esh