Ann: Results of Annual General Meeting , page-36

This pullback is a liquidity issue more than anything. I only ever get concerned about significant pullbacks if the volume is significant. Yesterday we had an 8% fall on only $70k worth of stock changing hands. This is absolute peanuts.

So did the company fall 8% yesterday because it is a bad company or because the stock lacks liquidity meaning any motivated seller with a small parcel can drive the price down significantly? The huge % fall on very low volume suggests the latter.

As far as the technicals though I believe you need to ignore this for EQX. This stock is far to illiquid to take note of technicals. As an example if right now i sell 40 shares at market ($50 worth of stock) I would drive the price down from $1.26 to $1.17 which is 6%!
So guys if you are a believer in the fundamentals don't fret about the share price unless you see significant volume going through the market. Also remember a lack of liquidity works both ways.

As an example if a motivated buyer or fund likes the story and wants to buy $200k worth of stock at market he would have to pay up to $1.78 based on the current depth screen. This would see the share price move up 41% for an order that is big but not exactly earth shattering to get filled. Remember in January this year the stock hit $1.48. Fast forward 2 months and EQX had almost doubled to $2.93. This is the nature of an illiquid stock and an excellent example of how quickly things can turn around.

The lack of liquidity is due to the fact we have a huge institutional following with the top 20 holding 80%. The company lacks a retail following which I believe can be easily rectified once we have a JORC and scoping study. This will allow John Welborn to get out there to brokers and tell our story based on the facts. Right now with no JORC we are just a company that appears to have some reasonable tenements. Retail investors and brokers are typically more conservative and as such would prefer to invest in a company with a proven resource and an actual plan as opposed to a pure explorer.

At the end of the day this company is simply a small cap explorer drilling some holes in the Congo. In a few months time we will be a small cap explorer with a JORC and scoping study and $70 million in the bank. I think 2013 will be our year. Look at what Exxaro valued AKI at and they didn't have a Bandondo up their sleeve and they definitely didn't have $70 million in cash.

As far as a low ball takeover I think this is unlikely. I am sure Ian Middlemas and John Welborn are in constant contact with major shareholders and as such I think they aren't vulnerable to a low ball bid. I do believe that there may be some strong corporate interest in EQX next year and based on the track record of Ian Middlemas I believe we are in safe hands. Mantra Resources was trading at 80c in 2009, $5 in 2010 and $8 in 2011 when taken over. I wouldn't be surprised if EQX follows a similar path.

Don't let the lack of liquidity in this stock scare you. It is the nature of the beast unfortunately.