Ann: Corporate Update , page-8

To be fair, not many people were expecting the pog to tank like it did (though there were one or two commentators that were). That's the critical factor. Given the circumstances, what the board is doing is really the most sensible thing to do until the pog comes back up or more gold is found. It's lucky (or maybe good management?) actually that they did do the cap raising as there is minimal debt and enough loan funds available to continue driling. Without the cap raising the company would now be in administration and holders would likely have lost the lot.

The sp has of course tanked as well and now reflects a speculative venture. It could go down more and will if they don't find more resource within a reasonably short period of time. However, the hope is that they will actually prove up more resource at Kavanagh and the pog will rise to where it is a reasonable investment to proceed with. This is not a prediction, more a hope, but it would not surprise me to see the pog back up to previous highs within 6-12 months, maybe even a lot sooner and that will once again alter the situation.

Any takeover attempt or partenrship deal won't be so good for holders now but might still be something that will come up given there is a large resource available but which needs a great deal of capital to get it up and going.

Sorry for the guys who've ridden it down from .60+ or who bought in at .20.