accesing hawsons through a silver gate., page-11

BusterEMB (Edward),

Thank you for identifying yourself as a Director of Silvergate and for taking the time to reply to my post. I will be travelling from Sydney to Brisbane for the CAP AGM / EGM. I have now also read both Silvergate letters, dated 7th November and 21st November. At the AGM, I think the following questions should be put to the CAP board and to the Silvergate representatives at the meeting:

* Silvergate has spent $16 million on the failed J/V with BMG, another $8 million or so buying CAP shares (19%ish) by now and must also have a decent legal bill due the court case with BMG. Thats, call it $25 million plus, equal to CAPs current total market cap. Why not launch a takeover offer and get the Hawsons quickly?

* In the Silvergate letter dated 7th November, it mentions a possible J/V agreement which Silvergate proposed to the CAP board. Why did the CAP board not disclose this proposal to share holders and what what was the nature of the proposal?

* CAP shareholders want to ensure that the company has adequate funding for the BFS. Given the mentioned relationships between Silvergate and Chinese steel mills, how does Silvergate having board representation improve the likelyhood of a dealbeing struck with Chinese steel mills? How can Silvergate confirm to shareholders that it has the economic muscle and necessary connections for the BFS / Hawsons development?

* In the begining Silvergate wanted seats on the board. CAP said no (board of 5). CAP then offered to increase the board to 7 and give Silvergate 2 seats. Silvergate said no, now we have an EGM. Why is board of 7 with Silvergate having 2 seats nor workable?

* How many other companies are looking at purchasing the BMG share of the Hawson's J/V and when is a decision expected?

* Once the liquidator sells the BMG stake in Hawsons, the proceeds will go to Hillam and ASI. Do Silvergate and the CAP board beleive that Hillam will try something else regarding Hawsons once he receives payment from the liquidator?

* If CAP signs a J/V agreement with another company (not Silvergate), would this mean Silvergate would want out of CAP?

* Can having Silvergate and Mr. Bin Cai on the board open more doors to Chinese steel mills or are their Chinese connections basically the same?

Thats my thoughts for the AGM / EGM.