received a letter from Tay, interesting, I like to hear the comments from others. ---------------------------------------------------- Lewis Tay A loyal Shareholder of Dynasty Metals PO Box 468, Haymarket, NSW 1240
12th Sept 2011
Dear fellow shareholders,
You may have received a very misleading letter from Mr Terry Gygar seeking for your support to vote for Ms Sun and Messrs Gygar, Carson and Koncepolski as directors of Dynasty Metals. As a result, I feel it is important that I draw your attention to the following facts to put the record straight and correct mistruths:
1) With the support of some key shareholders, I restructured the Dynasty Board in October 2007 as the previous managing director was leading the Company in an unclear direction and the Company was in the danger of losing the key iron ore tenements due to lack of exploration activities.
2) In 2008, I recruited Terra Search as technical and exploration consultants and Hetherington as the tenement manager to professionally manage the Company?s tenements. Mr Malcolm Carson was then working full-time for the Tiaro Coal JV and spent 99% of his time in Sydney.
3) The Dynasty?s iron ore deposit was conceptually developed and later discovered by Mr Dave Jenkins from Terra Search during the early field trips to Pilbara accompanied by myself in 2008. Despite this, Mr Carson is trying to claim he was responsible for the iron ore discovery in Pilbara, which is not the case. Further it is clear that the consultants within Terra Search who are very experienced geologists are more than capable of providing Dynasty with extremely competent advices and services to allow the focus to be on growing the resource base.
4) In July 2009, shortly after the GFC, I secured $830,000 of funding to commence the drilling at Prairie Downs, with the exploration and drilling program being supervised by Terra Search. Existence of iron ore was confirmed in September 2009.
5) In September 2010, majority of shareholders blocked a cheap share placement of 40m shares at 16c per share plus 20m free options at 20c to Xinhua Hebei (a small steel bill based in Hebei Province, China), as the transaction was considered being ?unfair? to the existing Dynasty shareholders.
6) Mr Terry Gygar and Ms Sun are legal representatives of Xinhua Hebei which now holds less than 12% of Dynasty, and you should question whether they are still trying to control Dynasty without paying an appropriate price to reflect the true value.
7) In a general meeting held in March 2011, a clear majority of the shareholders made a clear decision to remove Malcolm Carson and others from the Board and as part of a restructuring to reduce costs and focus on the Company?s core WA iron project.
8) Mr Yankel Koncepolski served a writ (as agent for Mr Thaler) on Dynasty to challenge the independent Chair of the March 2011 general meeting despite the law being very clear that the decisions of the Chair of a general meeting were final and correct procedures were followed. Mr Carson continued this action and also filed the same writ against the Company. Considerable time and money had been wasted as a result. The Company is pursuing these parties to recover court awarded costs for their actions.
9) Mr Gygar breached Board confidence to support Mr Carson?s writ and leaked confidential and highly sensitive information. They sought to prevent any new capital injection to the Company, at a time when the Company urgently needed funds, the absence of which could have resulted in the Company shortly being insolvent or not being capable of raising new capital at a fair price. Mr Gygar claims other investors were available but never produced an offer.
10) It is apparent that Messrs Carson, Gygar and Koncelposki have been working closely for their own agendas. We can only speculate what this is, but given the earlier attempt by Xinhua Hebei to control the Company at a very cheap price, one can assume that their agenda may be a continuation of this plan. Their actions have caused the Company to waste hundreds of thousands of dollar on legal fees and man power, and caused delay to the drilling.
11) Mr Malcolm Carson is currently the Chairman of a recent new float, Lithex Resources Ltd (ASX: LTX), and resides in Sydney. We would question his capacity to also serve for Dynasty if he is elected.
12) Mr Gygar is a former politician and is now an academic, with very limited commercial experience and even less experience running public companies. Ms Sun has never attended a Board meeting and has even less work experience, let alone public company experience. Mr Koncepolski and Mr Carson have both shown extremely poor judgement in trying to use the courts to bully their way, only to have costs awarded against them, and are now being pursued by the Company for the money they owe the Company under court awarded cost orders. Therefore we question why shareholders would ever want the Company to be run by thisteam? Question their experience, judgements, but most importantly motivation to be directors. Are they trying to better their own positions at your expense?
13) Mr Bin Wang is a well connected fund manager based in China, he is confident of being able to attract interest from large steel mills, professional and institutional investors in future capital raising which will be crucial to building shareholder value.
14) Mr Thomas Pickett is a lawyer who has tremendous experience in mining industry. He is a proven professional with companies such as ASX listed Cudeco Ltd, a $500m Australian exploration company. Mr. Pickett has extensive business contacts in Australia, US, and the UK, both in finance and the resources sectors which will be invaluable to the future growth of Dynasty, and brings a diversified shareholder base for the Company.
15) Over the past few months, using the services of Terra Search, Dynasty has implemented drilling programs on new targets. The Company has also now completed its first stage of the Prairie Downs beneficiation process which is very encouraging and farmed-out non-core assets which were at risk of being relinquished in the absence of any exploration.
I urge all shareholders to protect your financial interests by voting ?For? to the resolutions 1, 3, 5 & 8, and vote ?Against? to the resolutions 2, 5, 6 & 7 and attached a suggested proxy form. If you have already voted, then simply lodge a new proxy form which will replace the previous proxy, please submit your proxy before 10:00am WST Saturday 17th September 2011 via facsimile +61 8 9426 8900 or email [email protected] .
DMA Price at posting:
18.0¢ Sentiment: Buy Disclosure: Held
