Ann: Quarterly Activities and Cashflow Report, page-13

Bottom line from MY reading of the report is:

1. Production levels have NOT been reached.
2. Production costs are well and truely up not down. (almost at the spot gold price level)
3. What Income stream is there to meet ongoing costs/debts and shareholder returns ?. (very concerning)
4. Debt levels are mounting up to even higher levels.
5 Dilution of shareholdings
6. Seems to me that ore grades from projects not coming up to expectations.
7. Also in my opinion there is not enough of any high grade ore's to go through plant to make it a ongoing
economically viable concern. No wonder the plant was sold in the first place to the Co. It seems from
recent timesthat it is in MY reading/ understanding that the Co didn't have the full financials details/
checking of account from accountants. Thus resulting in these current issues with ASX requirements.
8. The Co will most likely need further significant funds /CR to fix up various ore circuits, tailings issues
/dams, ongoing Co costsetc etc etc

It is only my view as such so DYOR that's it's now just a matter of time as to when the major investors / con note holders realise just how troublesome, questionably uneconomical and unviable ore level recovery issues are involved in this whole project and may decide to pull out.

Once again DYOR and read the report to make up your own on your own mind.