Ann: Proposed Capital Reduction and Return, page-21

Good discussion here and I agree with many of the comments.

Reducing the cash brings the company more in line with its core activities which are exploration and as others have said allows exploration success to be more leveraged into the overall value of the company.

Also, I’ve been curious for a while at the predominant selling in this stock despite the inherent attractivemess of its prospects and its low risk due to its cash backing. The selling could partly be due to larger existing shareholders wanting to access the cash, ie they may be more interested in cashing out than the future potential rewards of any exploration. The cash return might be motivated because the company can see that the selling has been holding the company back in the market. By returning capital they might satisfy some of the latent sellers who want the cash and allow buyers to take control.

Also in my opinion any success with the Pyramid Hill drilling is going to set the share price on fire. Finding gold under the Murray river cover sequence on properties this large is like winning lotto. Any gold hots are going to be very exciting in this area due to its location and absolutely virgin nature. If sentiment for gold stocks was higher the money would have already poured in. The market is hungry for a new exciting gold story. Imagine if the first hits are high grade.Esh