Mexus Gold US (MXSG)

[T-Hawk]

. How should a company determine whether project costs should be categorised as sustaining vs. non-sustaining?[-]

Non-sustaining costs are defined in footnote 3 to the WGC Guidance Note on AISC and AIC as follows:

“Non-sustaining costs are primarily those costs incurred at ‘new operations’ and costs related to ‘major projects at existing operations’ where these projects will materially benefit the operation. A material benefit to an existing operation is considered to be at least a 10% increase in annual or life of mine production, net present value, or reserves compared to the remaining life of mine of the operation. Companies should publicly disclose the ‘new operations’ and ‘major projects at existing operations’ that are considered non-sustaining. ”

Apparenlty Perry Mason's Exhibit A also demonstrates total reserves are needed when calculating all in costs.

Baliff, please detain the defendant. Court is back in session.