Ann: Adriatic Metals Corporate Presentation, page-281

Has anyone considered that the company might be delaying the release of information while they negotiate to secure additional ground holdings.

It’s an interesting question in my opinion because it raises the question of where a director’s legal duties lie in the face of the listing rules and commercially sensitive information.

The directors have a duty under the ASX listing rules of continuous disclosure when it comes to information that by everyday interpretation has the potential to be price sensitive/moving but at the same time they have duties under the corporation law to act in the best interests of shareholders. If the ASX listing rules require that results are released which could potentially compromise commercial arrangements that are being made to secure the rights over neighbouring ground that those results point to as havimg significant value then there is an obvious contradiction in the way the laws operate. In this instance where commercial secrecy is involved I think that the director’s higher duty under the law is to the shareholders of the company not the rules imposed by the stock exchange.

Let’s put it more simply. If company X has secret Y which is price sensitive but by making secret Y public it significantly risks the commercial value of secret Y, what is a director to do?

I’m not saying this is the reason for the delay in information coming out but I think it’s a pertinent question to the situation the company finds itself in. Ideally you would want to keep all the drill results secret until you have secured any and all important surrounding exploration areas. Esh