Hole2 - CAD001, page-10

Mogga

I Victoria we have Exploration Licences (which is what Cahills is on), an exploration licence provides the owner with the ability to explore only for minerals.

Then we have Mining Licences which allow the owner to extract the minerals from the licence area.

You can extract a bulk sample from a Exploration Licence (up to 5000 tonnes) with permitting work plans etc, and generally only for surface deposits.

On a Mining Licence which Cahills would need, need to go through entire process, to apply for a Mining Licence need to have a Mineral Resource to state the amount of economic mineral and grades, mining plans, all to a high level. In addition would need to go through the Native Title Process for the application of a MIN, this is regardless of whether surface or underground mining.

They could commence mining from the current MIN5412, but once they reach its boundaries they would need a additional MIN to continue mining towards Cahills. Other things to consider is dewatering, ventilation, equipment, all of which would require decent power supply, without operating the processing plant, so would need to upgrade the power to the site.

All of the above is achievable, but there is significant time involved and great cost. Even to go underground mining on the current MIN5412 they would be required to prepare a Work Plan prior to the commencement of mining which would be reviewed by ERR and other government agencies