Ann: Quarterly Activities Report, page-12

Hi all

Some of my thoughts from the latest quarterly.

-The interest free $500,000 loan has already been utilisedfrom Maroon Gold, with $146,550 of it having been utilized. Nice to see that ithas been tapped before the $2,000,000 Bizzell Nominees loan facility which is atan interest rate of 10%.

-Cash and equivalents at $521,000 with costs of $563,00 lastquarter and an estimated $500,000 flowing out next quarter. No breakdown of thecosts associated with the grant of the Mining Lease and don’t seem to have beenfactored in to the estimated outgoings for the next quarter.

-Good catch on the Corporate on page 14 “progressed itscapital raising program” gassed, on page 4 of the quarterly it says its nowbeen completed. What that means is anyone’s guess, was the total capital raisingcompleted or did they close out the capital raising program under-subscribed?Would be the easiest sales pitch in the world with the share price above theissue price and looking like it will hold or far surpass the issue price. It’sa shame that we weren’t offered any of the action as some of us have boughtmore at higher prices. We are going to need the extra cash that the completionof the capital raising program would bring as the cash burn continues and we waitfor the obstacle-free grant of the mining lease.  

-Its good to see that they amalgamated the two mineralpermits into one in New Zealand, interesting that they didn’t do the same inAgate Creek but left two separate EPM’s as well as the MDL. The Kiwis aren’t tookeen on mining happening in NZ at the moment, if that’s the case they should belessening the expenditure requirements on holding mineral permits because itcosts companies money to hold the damn things.

-Great to see the assay results from Sherwood, I had been lookingat the ASX announcement on the 1^st of February 2016 for betterdefinition before the results came out and it all seemed a bit vague for my liking.The wireframe and block average au grades looked good in the 2016 announcement soit’s very reassuring to have it confirmed by the recent assay results.

-Nice to have confirmed that the Black Jack Mill has beensuccessfully recommissioned so that our ore can be treated. I notice thatResolute’s Ravenswood mine is 65km East of Charters Towers.

-The Ashford Coking Coal project looks like it might add valuein the distant future, funny to see that it operated from 1959 to 1990, andthey realised in 1976 that they were burning premium quality coking coal butthey presumable shrugged their shoulders and continued burning it anyway. Seemsthey have started building the federal Inland Rail Project in December 2018 andits scheduled for completion 2024-2025. Nice to see that its completion is atleast on the horizon.

-Nice to have a colourful picture of the Host Breccia of High-Grademineralisation on the front page of the quarterly, would have been nicer if itshowed visible signs of gold. So we have 380,000 ounces of gold within the mininglease area alone. We could really do with our own mill with the previouslymentioned ore sorting technology. The 30^th of September quarterlystill shows the Georgetown Mill site on the diagram of our permits. Can anyoneenlighten us all on what happened to the George Town Mill? Was it just thatthey failed to recommission the mill? Or did they run out of money? They had along time to accomplish what everyone had assumed was an achievable task. Whathappened?

-Gold price continues to rise with the Australian dollarfalling, it’s a good sign for the future profitability of LNY.

-Its good to seethat there has been some movement in the share price. Some of us will even bein sitting on a profit which is a novel experience for the long term holders ofLNY. The sky is the limit if Laneway can start operating at a profit and continuesto build on it. Especially if Gold regains some worldwide investment demand andwe start producing at a consistent rate. It’s looking like it’s going to be acracker of a year, lets hope that its all smooth sailing ahead !