C$3M - $5M could be left over for San Juan Expansion

(STATED IN $000s)

1) Available Cash from Finskiy, Scola and Prepaid Gold Sales financings

Equity = C$19,600 (C$20M gross, we pay only 2% fees)
Prepaid Gold Sales = C$26,620 (US$25M, we pay no fees)

Available Cash = C$46,220


2) Expenditures in first 12 months to restart Lamaque

The data was taken from the report prepared for Fortis. Some costs may require changes, but they should still be in the ballpark.

U/g development - US$11,584
U/g utilities - 299
U/g equipment (see note below) – 5,118
Mill and processing – 1,291
Surface equipment - 786
Surface infrastructure – 1,030
Sustaining capital - 128

Sub-total = US$20,236 (C$21,547)

Warehouse inventory – 1,878 (C$2,000)

Outstanding Quebec payables – 9,392 (C$10,000, there is currently C$16.6M in company wide payables on the books including San Juan, but there is also C$6.1M receivables, thus a net eventual payout of C$10 is probably still reasonable)

G&A – 2,818 (C$3,000)
Environmental bond – 1,127 (C$1,200)
Lamaque resource upgrade – 939 (C$1,000)

Expenditures to restart Lamaque = US$36,390 (C$38,747)

Notes:
These expenditures no longer apply:
US$3,035 Contingency (I’ve built in contingency elsewhere below)
C$5,000 Escrow Overrun Account
C$9,000 IQ repayment (IQ will still be with us)
C$2,500 Bridge Repayment (the new $4M bridge loan is just an advance of the C$46.2M financing, and doesn’t involve other investors that need to be repaid)


3) Possible Surplus Cash

Available Cash = C$46,220

Expenditures to restart Lamaque - C$38,747
Possible leased equipment – (C$5,000) - they should be able to purchase most of the equipment with capital leases, which pushes out the payments over several years
Contingency and Working Capital – C$5,000
To clean up remaining small items on the Balance Sheet – C$2,000

Total Cash requirements in the first 12 months = C$40,747

Possible surplus cash to expand San Juan = C$5,473 (C$46,220 – C$40,747)

If that doesn’t work out then there is also the C$15M contingency that can be accessed at any time (by either exercising the warrants or doing private placements, depending of if the share price is above $.30 or below).