Ann: Response to ASX Query , page-37

WC,

I agree with you. In my opinion the biggest cash sink-hole on a company's record is PRIDE. In this particular instance, ZYL are admitting a mistake, instead of burying it (no pun intended), and trying to rectify it, at the direction of legal counsel. At this end of the market, there is a lot of volatile spikes from spec punters, and I suspect a large portion of the degradation has been from ST holders hitting stop losses. If 10% of the holders were patto subscribers, a downgrade from them would cause a rapid decline, and a domino effect, regardless of what was happening with the company.

The REAL value in this (and any junior) is funding to develop. Once that is in place, all of your worries will disappear. How far do you think we are away from that? It could be a few months, it could be tomorrow. No-one knows what is happening behind closed doors - except for maybe those that extended the bridging facility 2 weeks ago - which must have been approved on something.

One thing is for sure. Everything is in place to pull the trigger.

In late 2012, I emailed Ian directly due to my frustration with communications from the company. I was pleasantly surprised when I received a response from Ian, briefly answering my specific questions. While there was nothing contained that I (or any other investor) didn't already know - Ian realigned my expectations for continuous communications, and the diminishing returns announcements have on the price.

At the time when we were sky-rocketing, ZYL was picking the low hanging fruit which would make any company shoot up. I.e: drilling results, offtake agreements, Mbila possibility - things which can be executed quickly, reported quickly and caused a lot of hype, but never really took a lot of work. When things like BFS, funding agreements and legal issues arise, there is much less to report on, and a LOT more work. Ian gave me the specific example, that if they were to release a drilling announcement today, it would do very little to the share price, whereas it would have made major changes to the cap not so long ago. A very obvious point was made, but the blur of my frustration and losses had taken away my rational thinking of the bigger picture. It is certainly clear that ZYL management realise it.

Additionally, I had directed Ian's attention to the existance of HC in the very slim chance ZYL were not keeping themselves apprised with the concerns of investors. The response was that ZYL was acutely aware of the several forums that discuss ZYL and the issues that get raised by participants.

IMHO, the initial price sink was caused by poor communication (delays) last year, in the lead-up to the BFS, and the bad news about Mbila.
The BFS gave no reason to sell, but the price had already halved and there was a bad taste in some investors mouths.
Since this event, there has been nothing made public to materially affect the price negatively. The same could be said for the positive.

One serious investor, who wants to sign a funding agreement will spin this company 180.

TLDR: Keep Calm and Carry on (Average down)

rek