Long time watcher, rarely post. have sent the below the GBG...

Long time watcher, rarely post. have sent the below the GBG today.

Dear Sir,

Around 6-8 weeks ago I sent a request for clarification regarding costs and revenue for the Karara Mining, I have not received a reply.

Today you released an announcement regarding a proposed de-merger of the Mount Gunson Assets from Gindalbie.

All shareholders need to make an informed decision regarding the ongoing viability of Karara and at present I don't believe we have sufficient operational information to make that decision and I doubt the independent experts report will give any further insight.

The monthly reports do not give enough information regarding costs or production issues.

From the quarterly reports the following information has been provided.

Average production Volume Mar 17 - Jun 18, 1,983,500 Tonnes

Average C1 Costs Mar 17 - Jun 18, $77 / Tonne

Average Sell Price Mar 17 - Jun 18 , $111 / tonne

Average production Volume Sep-Dec 18, 1,828,500 Tonnes

Average C1 Costs Sep-Dec 18, $92 / Tonne

average sell price Sep-Dec 18, $130 / Tonne

Again My questions are:

1. Why have the production levels dropped over the past two quarters?

2. Whilst a drop in the production levels account for some of the increase in C1 costs, what constitutes the balance of the increase,approx $10 / Tonne.

3. What operational issues occurred in the last two quarters for the drop in production.

4. What is causing the plant from producing at the level of 2.1m tonnes it achieved in June 2017?

5. Could the production volume and costs over the last two quarters been manipulated in expectation of today's announcement?

Based on the limited information provided in the quarterly reports combined with the information from last years accounts for karara lodged with ASIC, its quite simple to calculate that karara operated cash flow positive for the 12 months ended December 2018 even with the drop in production over the last two quarters.

When will the independent directors start requesting effective production and profitably information from Karara so that all shareholders are kept fully informed.