Ann: Progress Report on construction EVG LLGTP Do, page-18

re: Ann: Progress Report on construction EVG ... Gday Folks,

I would be surprised if 12 cents is broken on a weekly close basis, but then the share market is always full of surprises.

I dont think the share price weakness is specific to EVG ... only Monday week ago we were at 16 cents, so market sentiment will over power fundamentals much of the time.

Gold could possibly correct to $1140, which would be a 20% correction from $1430.

In 2006, over a period of 5 months, bullion corrected 20% from $715 to $572.

In 2008/09, over a period of 19 months bullion corrected 27% from $1000 to $723.

But rest assured bullion will break above, well above, 1430 before this bull market ends.

On the upside EVG have forward sold 50% of the first 4 years production at $1355. I wasnt much in favor of the forward sale, and am still not a great fan, but it presently should put a floor under the share price.

Maybe if bullion gets to 1140 we could sell out of the forward sales and pick up $200/ounce. With 126,000 sold that would be a nice $25 million pick up.

So whatever happens now is very much in EVG's court. Get the company successfully into production and all will be well, irrespective of fluctuation in gold prices.

Just a few thoughts, mostly positive for EVG prospects.

Regards, cy7