Ann: Response to ASX Query, page-11

Parley, they have a mining lease for Telecom Hill so will need to prepare all the necessary reports (including feasibility studies) to get this to a starting phase.

Additionally, they stated in the recent Annual Report -

"In addition to the already-defined mineral deposits there is substantial upside potential to locate additional mineralisation. The prominent ridge line of the Robinson Range Formation that extends between the Telecom Hill East and Telecom Hill West mineral deposit areas is an excellent target that has strong potential to increase the deposits already defined. This area is yet to be tested by drilling but geological mapping and aeromagnetic survey data indicate BIF of similar qualities to those present in the mineral deposit areas. This will be the focus of further exploration during 2016/17."

Obviously they intend to explore and drill to expand the Hematite (DSO) resource and JORC, which also needs to be upgraded to comply with the most recent JORC (2012) requirements.

A lot to do before they start mining and all this costs $$$...hence the proposed cash injection/share issue via "Tranche 11 Shares".

They may also need that additional $98mil to pay another fine.....