Ann: January 2011 Pictorial Update , page-6

nasty

I am holding ADU long term (started buying late 2009, I think, and added to my holding in 2010. It is a reasonably sized holding (for me) of 130,000 shares.

I participated in two capital raisings (I was not happy that they had to come back to us for a second time when the previous time they indicated there would be sufficient funds to complete the project - but costs go up and life goes on).

IMO ADU is an OK goldie investment. It gives exposure to the rising price of gold, but in the short term there is a cap on this via the hedge at $USD1075 of 296,000 ounces to the mighty MacBank

Upside is that they explore and find more gold (which they seem to be doing). I am hoping they find more oxide rather than sulphide gold. I am also hoping that at some stage they can increase production to 200,000 ounces per annum (no idea if or when that might happen). They seem to have some plans to mine the sulphide (using toll treatment?).

Nothing particularly to worry about with ADU, just hanging around to get a gradual share appreciation. The good buying in price was in the 36-45 cent level last year. From here I am just waiting for developments to occur (deals, exploration results, POG increase, whatever).

I have other goldies which give me more excitement (and more worry), but I need to have some goldies like ADU which are more advanced and hopefully more stable, so it is a long term keeper (unless GFC2 happens or the POG falls to $USD900).

Just my thoughts. We all have our own reasons for owning ADU.

loki