and so it begins, page-63

R36,

General all good points except has anybody thought about what happens if the liquidator does not sell Hawsons at this time and just sits on it.

I understand that in general a liquidators obligations are to obtain the best price for selling assets.

ASI could have had control of Hawsons through BMG.

ASI had a dispute with BMG over the payment of $200,000 involving some of its leases. It seems that Ms Lau and Cheung as directors of BMG complained bitterly about the payment of this $200,000 but proceed to pay Ms Lau's daughter a secret commission of around a $1,000,000 from BMG.

It seems that ASI wanted Hawsons from the beginning when they first invested into BMG but did not have the money to pay the full price for it.

Reading between the lines it seems that ASI went to court to try and obtain 100% control of BMG when they only owned 25% of it.

They failed in this matter because the judge accepted that their finance resources were not substantiated and the amount they claimed they had would not have been sufficient to meet even their own valuations evidence of more than $64m just for Hawsons

CAP management sided with ASI as they thought ASI were their white knight until ASI showed a different colour and now CAP management are advising against having them on the BOD.

It should be asked why has not ASI mounted a 100% takeover of CAP? Is it the same reason as they had with the BMG path. Not enough money? If that was the case how will ASI assist CAP in the future.

This is all a problem for CAP and is why CAP are trading at 22 - 25 cents and in the long run they may indeed go lower.

Why did CAP not raised money when its price was 93 cents and carried on with the BFS at that time rather than wait all this time and do nothing. This was a serious error by the management.

Now the problem for CAP is many including where is the $20m going to come from to pay for the BFS in the future.

Assume that BMG stake is not sold and even if it was which is a bigger problem for CAP to buy it back the only way for CAP to raise $20m would be to issue a one to one rights issue. This will slash the value of shares by half.

Why would anybody buy now with all these matters unresolved.