Open Letter To Rob Tyson

Good Morning Mr Tyson,

Firstly congratulations on the ongoing success of the Wagga Tank/Southern Nights project. It has created wealth for all shareholders and the acquisition could not have been timed better.

I have read the AGM presentation and I am dissatisfied with the following:

1) Wirlong.  JOGMEC - "final earn in expected by March 2018." Why is this important project stagnating for 12 months? In my view it is not good enough to say you have been distracted by Wagga Tank/Southern Nights.
2) T1/Mallee Bull.
When will the Pre Feasibility Study be complete? What is the hold up as it is already two months overdue? The excuse for further met testing doesn't stack up - that could be included in the Definitive Feasibility Study.
Why is Peel contemplating an "exploration decline to 300 meters below surface? The Peel Board is probably missing an opportunity to exploit T1 using minimal capital whilst generating cash flow of the order of USD$40 million (of which Peel is entitled to 50% or $20 million) - this is based on a resource of 150,000 at 15% Zn equivalent and a 14:1 strip ratio which I acknowledge is a guess. Speaking as an experienced underground project manager I believe the the exploration decline to 300 meters below surface will cost a minimum of USD$14 million of capital (decline, stockpiles, sumps, crosscuts, vent infrastructure and hanging wall drive for drill platform). Investors don't want to burn a large portion of the profit from the T1 open cut mine by developing an exploration decline. Wait until you have found more metal inventory near surface at Mallee Bull. Why not follow up the highly promising Mallee Bull North? The search for additional lenses hasn't been exhausted from surface drill platforms. The exploration decline at 300 meters below the surface it is still a long way above down dip extensions of the Mallee Bull copper orebody (currently drilled from surface to 1200 mbs) - i.e. drilling from 300 mbs won't be cheap either! Whilst the underground infrastructure is in place it will provide access to ore initially by driving on it and then after comprehensive assessment take out some stoping block but it will be unlikely to give a return on the $14 million capital in a hurry. Investors want to take some profits!

It is time for Peel to rattle the cage of whichever consultant is conducting the PFS for T1. Don't let them drive the agenda beyond the initial dig and truck pit so that they can waste time and money on the underground stuff at this stage.