Ann: Board and Management Changes , page-2

Fellow SBLers,

I'm interested as to the feelings of other shareholders as to this announcement last week. I've only just got a good chance to read over it and am confused as to the message that is trying to portray.

This prompted me to go back over a heap of announcements over the last 3-4 years along with any other information I could find.

1- June 2009 Annual Report introduced us to the Konongo Gold Project when it reported:

"REVIEW OF OPERATIONS
During the year the Company acquired the option to purchase 70% of the Konongo Gold Project, located in the world class
Ashanti Gold Belt of Ghana (see Figure 1). The Konongo Gold Project comprises 192 km2 of granted tenure and contains 16
known gold deposits along 12 kilometres of strike (see Figure 2). Significant infrastructure remains on site including a 350ktpa CIP
plant. The Konongo Gold Project is jointly owned by Mwana Africa PLC, a Ghanian company and the Government of Ghana."


I UNDERSTAND THIS TO MEAN OUR 30% PARTNER IN THE PROJECT IS THE GOVERNMENT OF GHANA which is confirmed in an article in on www.mining-technology.com/projects/konongo-gold-project/

"The Konongo Gold Project, located 200km northwest of Accra in Ghana, recommenced mining operations and poured its first gold in June 2011, within three months of obtaining environmental approval. The mine is 70% owned by Signature Metals and 30% by the Government of Ghana.

In October 2011, Signature Metals announced its decision to be acquired by Singapore-based gold mining company LionGold. The deal is subject to the shareholders' approval. LionGold will become the new owner of the Konongo mine if the acquisition is successfully concluded."

2 - The following announcement was made in the 31st December 2009 Half Year finacial Report.

" NOTE 5: INVESTMENT IN SUBSIDIARY
On 3 August 2009, the Company announced it had reached agreement to acquire 70% of Owere Mines Limited. On
the 21 December 2009 the Company exercised the option to acquire the interest and issued 50 million shares to
Alpina Group Limited as consideration to acquire the interest. Under the terms of the agreement a further payment of
50 million shares or A$1 million cash will be made once the project achieves 1 million ounces in Measured and
Indicated JORC resources (tranche 2). A final payment of A$3 million in cash or shares will be made following the
production of 100,000 ounces of gold from the project (tranche 3)."

In the 2010 and 2011 annual reports it shows OML (Owere Mine Limited) as 70% owned by Signature.
Does this mean there is a separate Board of Directors for this subsidiary company based on a 70/30 split with the Ghanian Government.

Are there any Ghanian Government appointed Directors ?

The lastest announcement from SBL on the 7th September indicates :

“Related thereto are the resignations of:
•?Mark Gillie will resign as Executive Director of Signature Metals
with Mark’s resignation to be effective on 30 September 2012;
•?Theo Christodoulou’s resignation as Alternate Director of
Signature Metals (alternate to Mark Gillie), will become effective
upon the resignation of Mark Gillie on 30 September 2012;
•?Errol Smart as a Director of OML;
•?Mark Meyer as a Director of OML and as Project Manager; and
•?Bill Reid as Manager Geology.”

Can anyone recollect any information regarding directors for OML ?

I can’t find any reference to this in any of the SBL announcements or reports going back to 2008.

When where these people appointed to these positions and why?

I would have thought the SBL Board of directors should have been the representatives ?

Especially in the case of Errol Smart who according to the announcement from LGC (Liongold) on the 4th of September 2012 also resigned as Group Chief Operating Officer of Liongold since being appointed on the 12th march 2012. Is there a possibility that he was both a director on a subsidiary of SBL, Owere Mines Limited (OML) and also been the Group Chief Operating Officer of Liongold who was still in a bidding situation for SBL ?

Another troubling issue is the reference in the latest SBL announcement of :

“The Company has engaged a team consisting of Matthew Gill, Dr Denis Clarke and Peter Chen to
oversee the transfer of operations at the Konongo Gold Project.”

This leaves me a little nervous as it doesn’t clearly state what the objectives are.

Is it just a simple matter of sweeping the operation clean and getting things moving again or is it a possible transfer of assets between Liongold operations ?

SBL is NOT a 100% owned subsidiary of Liongold as they try to imply by loosely always refering to it as a subsidiary in all its releases.

On another note 2 lots of options are due to expire shortly. 9 million @ 3c on the 14th of september and 20 million on the 28th of September also @ 3 cents so there is little chance these will be taken up. That should be a positive for stock dilution.

The web is very tangled at the moment with all LG's aquisitions and constant personel changes and SBL is firmly in that web. A few clarifying announcements in the coming weeks along with a positive suprise in the annual report along with a bit of stability would be nice to see, but at the moment I still feel a little unsettled.

IMHO SBL still has huge potential and Long term I feel my patients will be justified but only time will tell if my gut was right.

Just my take on the current situation. I could be way off the mark. Love to hear any thoughts.

Cheers to All the SBL Holders. United we Stand !

Peteski.