Ann: Notice of Annual General Meeting/Proxy Form , page-25

re: Ann: Notice of Annual General Meeting/Pro... Stagman, you wrote:

"I'll ask you the question again, why is it ridiculous to suggest that the directors are in the process of issuing themselves with cheap options?"

In response to what i wrote:

"I again suggest you revisit the previous option issues, and the prevailing S.P. at those points, and ask yourself whether you think they have been ripping you off over the duration. Im not convinced our management is in for cheap options, please, that is ridiculous."

and

"btw, im a fence sitter on this option issue - i see both sides fairly equally."

just so you're clear:

1. My ridiculous comment was in respect to managements historic resolutions regarding free options. I do believe they have held the bar high enough to enable the issuance of prior options. Therefore, I do not believe management have a strategy of diluting the hell out of mum & dad investors.

2. Regarding the pricing of the new options - I think they are at a reasonable level, but as you say, there is good reason to believe we should be well north of those exercise prices in a few years. Nonetheless, they are not doing something out of the ordinary here - not that 1000 wrongs make a right either.

3. As for my opinion on the matter, i've already stated im a fence sitter.

4. As for my votes, i will vote no to the relevant resolutions. I have a standard policy of voting no to 'incentive' options. But that is just me.

5. I also think 1 mill is a bit of overkill on such a tight registry. Perhaps 500k & 250k would be more relevant.

now, in answer to your question:

* where will the s.p. be in 2013 - I'd hope it is far north of $2, conservatively. Where would the s.p. of any immenent producer be in 3 years? Obviously higher if thinks pan out the way they intend. But do you think TRF should just not issue options because they should be re-rated soon? Do you think BHP management should issue their 3yr options at $100 just because they are opening 5 mines soon and bloomberg predicts higher I/O prices? It is just silliness.

All I can hope is that every vote is made, and made based on how you feel about these resolutions. Otherwise walk away from the daylight robbery that you perceive this to be.

I hope my views are now clear. And Stagman, im not against opposing views on anything, particularly investments. I am concerned, however, that you are just trying to stir the pot, creating angst, when you yourself hide your intentions. I've told you my intentions - why dont you do the readers the courtesy of explaining how you intent to express your discontent with management? I do think it is one thing to whinge repeatedly about the resolutions (rightly or wrongly) but it is another to actually do something about it.

Cheers,
Split