Ann: Response to ASX Query Letter, page-8

For me this question and request for information is better than any information session or Anual report, because the responses are factual rather than speculative directions depending on future outcomes.

Key points for me are,

You do not have to complete a JORC under the SI mines and Minerals Act 1990, to be eligible to apply for a ML. This automatically silences many nay sayers who claimed our ML is invalid because no JORC was done for SJ.

SJ is a stand alone project.

The reason behind the 90 day DD period from Traxy.

The explanation behind the hold ups from drill results, which played a significant role in delaying the term sheet from Traxy.

Confirmation that mining operations have commenced on SJ.

Already started mining nickel, all be it a very small amount but imo it’s significant. In the initial opening stages, mining of actual resources is the last step. ie camp, access roads, pads, erosion controls, loading ramps etc etc are all done first and once the majority of site is set for daily ops, then you actually bog down into mining. It seems Axiom is progressing well.

Mining cost are been controlled by minimising capital expenditures by renting initial assets.

Still expect shipment by EOM.

Traxy to buy first shipment, this one also for me is a big one. Cause I have been thinking if Traxy need 90 days to complete DD, then who is it that we are actually selling the first load to, and how do we get paid if the off take sales agreement isn’t signed before that first vessel leaves.

Glad to see Magna is doing the right thing, well as far as CN goes, I personally hate CN.

And finally that the next round of drill result for SJ could potentially have a impact on the SP.

I don’t care for WG ATM, IMO it’s all about getting SJ on line.