Ann: Investor presentation, page-47

Hi there,

This one is indeed interesting given the two major shareholders who sold their mines to RED have recently sold out their holdings. I suspect that their sales reflect that they are happy to take their profits and use their cash for other purposes. Rightfully so in that businesses don't sit around but need to deploy their cash elsewhere. We have seen the last mine months or so where the price has been in the 25-40c range. While posters here have reason to say it can go up further beyond this but the real catalyst for such a move is in the King of the Hills development project. From a business perspective, they may not want to wait around for this because they perhaps have better opportunities or shorter term needs for cash. They have made some 400%+ return on their holdings. So they are out. And to their credit.

Where to now? The stake that is sold is now in someone else's hands. I have not looked deeper into who has it. But the overhang of the large stakes is now off so one can expect more volatility going forward. I believe that if the King of the Hills project keeps delivering positive results and the Siana sale does go ahead, that may provide tailwinds. But if the March quarter is like that of the December quarter, we are going to see more of the same. Whether posters here like it or not, they will need something beyond debt to fund their mine development. So I would hinge the March quarterly as a litmus test.

Frankly, the vitriol and lack of civility of some posters here who hold stocks give me reason to be cautious. People seem to be quite emotionally attached to their stocks. I hope they are the minority of those who hold these stocks and move prices going forward.

All the best,
Brian