holdings from placement, page-2

I bought back in at 1.6c, but just 50 k shares as I was expecting some dumping of the new issued shares, scheduled for Friday, 18.12.09 .

Maybe those shares will be released on Monday.

I will watch traders behaviour before I buy more. According to the last ann regarding drilling activities we could expect new and hopefully better drilling results shortly before or after NY.

To lift sp we need an increased grade of at least 5 g/t, better would be higher than 10 g/t.

I had some email exchange with CEO Nick Lindsay after the announced cr that provides some confidence but that doesn't count at all if traders think opposed to that.

17.11.09

I am a great respecter of the Hot Copper forum. Its a tough judge but then it is a great sounding board.

Anyway, I understand and share your frustration. Capital raising for junior and emerging stocks is hard work, and compliance take time. But while capital raising may have its downsides [dilution, discounts, stock suspension, etc], the share price will rise faster and stronger as a result of being well-funded.

The delays here are unfortunate. There is nothing wrong with the company. We are financially sound, progressing with our work programmes and generally doing all that is expected of management and more. Its just that capital raising is a price sensitive business which is why trading is halted and suspended. Those are the rules we are bound by. And, theres a heap of paperwork, ASIC and ASX compliance documents our hands are tied to this system. But I have great people and excellent legal support. Arqueros is a great project - please be patient.

Nick


18.11.09

Thank you for your note. I realise the situation has been strongly criticised but it was well thought through and I am satisfied that this gives us the optimal outcome for capital growth of the company. We (the Board) have great confidence in the company but the markets remain very uncertain the gold price reflects that - and we want to make absolutely sure our financial position is sound. The share price will recover and go stronger than otherwise, with the aggressive work programme underway, underpinned by confidence from the funds being raised. I hope to see you back on the share register soon.

Best regards,

Nick