letter to angus, page-13

You make some good points CUB. However even though Ang's letter could use some editing, his heart is in the right place.

As for "you need to communicate on their level". Apart from the "accusation" as you put it, I think Ang has expressed his views on their level.

The correspondence from AAR over the last few years hasn't exactly been of a high corporate standard in either quality or content. Apart from a few of the latest reports and presentations out of AAR it displayed no visible effort outside cut and pasting old information.

We still wait on any news of Mandilla drilling, which was reported in March 2008. "Results from this program are not expected until mid April 2008 due to the backlog of assays at all assay laboratories." Now mid July and once again no effort at all to update the market. This is a negative aspect of AAR that has become a black trademark, complained of by many before me. In a market full of distrust and uncertainty AAR will need to communicate far better than they have in the past if they are to gain support.

The KP PFS would also have to be the longest PFS in history. Angus telling me sometime ago that "PFS is just an ongoing process" without a definitive conclusion, displayed little understanding of major resource project study processes. No company works on a 'how long is a piece of string' process.

Studies have objectives, targets, outcomes, conclusions and deadline dates. Rio and BHP would love it if we said that to them as they poured more money into the projects EPCM "ongoing" bucket of money. Stating and doing "ongoing" is simply spraying in shareholders pockets and reducing cash reserves in an "ongoing" and dare I say irresponsible manner.

My view on self funding potential is only valid if Mandilla is proved up. As we don't know what is going on there all we see is an "ongoing" burning of funds as Black Italian pointed out here some time ago. I was wrong to argue this point with my friends BI and Harlee they had it right.

Personally I have felt let down by a company I supported visibly and financially for so long. Until they display something to indicate they deserve my funds again, I now share the markets view.

Despite the above, I will be more than pleased if AAR proves my many past positive thoughts on both Mandilla and KP to be correct.