cao report released, page-2

Miga'a response to the report.



MIGA Statement on CAO Audit Report on Dikulushi

WASHINGTON, DC, February 2, 2006—The Multilateral Investment Guarantee Agency (MIGA) has reviewed and is acting on the recommendations made in an audit report of its due diligence of the Dikulushi copper and silver mining project in the Democratic Republic of Congo. The report was prepared by the Office of the Compliance Advisor/Ombudsman (CAO).

MIGA is committed to supporting the ongoing efforts of its client, Anvil Mining, to fully implement the Voluntary Principles on Security and Human Rights, one of the main issues identified in the CAO’s report. Anvil Mining has recently contracted the services of an international security company, and has also contracted a law firm to develop a protocol governing interaction between Anvil and the government on security-related issues. MIGA will continue to monitor the progress being made to ensure Anvil fulfills the commitments it has made.

MIGA is also committed to continually strengthening its work on the environmental and social impacts of the projects it supports. The agency recently conducted a field assessment of the Dikulushi project’s social impacts and community engagement. Based on the assessment, MIGA has advised the investor on steps to take on the implementation of the community development program, to ensure that the expected development benefits are realized and any potential shortcomings addressed. MIGA will continue to monitor implementation of the community development program.

Following on the recommendations of the Extractive Industries Review, and within the context of MIGA’s upcoming review of its social safeguards and disclosure policies, the agency will examine the broader issues the CAO report raises regarding the way MIGA conducts its due diligence and project monitoring.

Looks positive - we keep the insurance - coupled with figures due out tonight - Monday should be a big day for AVM - up in Canada at the moment.

cheers
L/H