Ann: Trading Halt, page-401

Overall the AUZ storyis good and will remain good, the positives of AUZ and Sconi and the SKI off take remain; however; 

I am sorry using Terrain Capital for a capital raise at such a discount doesnot pass my smell test - IMHO it stinks, who decided the level of discount? 

Solets have a look at our AUZ Chairman Michael Ramsden is also Managing Directorof Terrain Capital plus

Oneof our other AUZ 5 member boards Dominic Marinelli is also aDirector  of Terrain Capital.

(So 2 out of 5 AUZ BOD are also Terrain Capital thats not good) 

(AUZ Board Members Michael Ramsden Non Exec Chairman, Ben Bell MD, MichaelElias Non Exec, Dominic Marinelli Non Exec and Oliver Carton Company Secretary)

As someone else said they should have raised at a much earlier date i.einstead of taking the rotten Bergen deal which was later correctly cancelled and before this Credit Raisebecame an emergency cash raise. 

It also makes me wonder why we ended up deciding on terrible the Bergen deal IMHOthese have been more dilutive than they should have been to ordinaryshareholders, A regular credit raise of A$10 million before the decision to gowith Bergen would have been a lot less dilutive than the course of action thathas unfolded Bergen and then this credit raise.

YesAUZ BOD and Management may have been led to believe SKI and or NAIF money wouldbe coming negating the need for this cash raise however they are paid to planfor the best but be prepared for the worst.

HavingRamsden as Chairman of AUZ and Managing Director of Terrain Capital plus Marinellias both Director of AUZ and a Director of Terrain Capital has a risk ofbeing seen as a conflict of interest.

Inmy opinion Ramsden and Marinelli should step down from the AUZ board, wedefinitely don’t need both of them on the AUZ Board because they appear one and the same asregards AUZ and Terrain Capital links.

Come the AGM, if not before they will not be getting my vote on re-election.

It will be interesting to see if they raise A$5 million or A$10 million in thishighly discounted credit raise.

As I say the overallAUZ story is good and I believe Ben has done a good job in bringing in a short 3 year period a failing gold miner to the company we have today, however IMHO we need to strengthen and diversify the BOD and the sooner the better.

Sorry, I am usually very positive about AUZ but in this case have got to call it as I see it.