Grades of AU, page-106

Hi all

I have copy and pasted the email I sent to AON with a summarised response. Hope this answers more questions than it raises.

My email
"To whoever might be left in charge

I am a current shareholder, not for much longer by the look of where our price is heading. I am now unfortunately in a position where I am close to losing nearly $-------- on investing in this company. It seems to me that we have been led down the golden path by management with all the comparisons to SIR and lack of actual meaningful progression with anything of value.

We invest in new land ( Fraser Range) why???, we consolidate at a time when we really have nothing to offer , again why I ask and now our price is heading to pre consolidation levels.

What I and all the other pissed off shareholders would like to know is what management is doing to catch this price slide, because at the moment it looks like you are doing nothing. It is obvious to all that Mars will not yield gold grades and quantities on a commercial scale that would make it viable. HPX have turned out to be a noose around our necks and have offered nothing of any value other than to dump a shit load of shares just when our price was rising. Bundi is a dust bowl.

So please give me some confidence that something is being planned to turn this whole debacle around or should I just get out now and lose up to 90% of my money. The way this has been handled is nothing short of pathetic.

Does anyone at Apollo actually have the guts to now respond to my email with something resembling honesty and not feed me the standard lines. You at least owe me and the rest of the shareholders that."

Summarised response

1) Investment if Fraser Range- Basically they believe that FR still holds considerable significance and "the exploration prospectivity of the FR continues to be high and Apollo is focused on delivering returns based on responsible and technically sound exploration methodologies".

2) Share consolidation. Why?- "the company deemed the share consolidation would result in more appropriate and effective capital structure. "

3) What is management doing to catch the share slide- They believe most of the reason for the share slide is the general " overall negative share market environment for explorers and the resource sector in general" and " it is apparent there may be a degree of tax loss selling". They have also stated that " a majority of management have acquired shares on market and placements during 2014/15 as we have a strong belief in the long term future of the company"

4) Mars Aurora Tank- " Recent exploration results from the MAT drilling project were considered to be very encouraging. However the target at depths beyond 50m have not been tested." and " The published exploration results by Apollo yield grades significantly above background and provide much confidence the gold system at MAT has potential. Only further extensional and step out drilling will confirm this ".

5) HPX- "Access and publication of these techniques has allowed the JV to conduct tenement wide exploration which added valuable information to its dataset and identified a number of variably ranked exploration targets. The company progressed and drill tested certain targets and is continuing to review and evaluate the findings".

6) Bundi Project- The Bundi prospect covers a large area and Apollo's drilling to date has only tested a small part of the overall potential. Further targets across the prospect remain untested. Only 3 individual holes have been drilled by Apollo."

" We are progressing on all our projects with maximum effort. Exploration requires significant time, effort and funding. We believe we have achieved this however, as with any exploration not all prospects become mines however we believe that with continued work and planning we will be able to achieve significant returns shareholders"

So there you have it a fairly detailed summary of the response from AON, I am still not sure what to make of it overall. I agree with some things and not with others. When I have time I plan to send a comprehensive response to the email outlining my thoughts and see if I can delve any deeper.
At least they sound like they haven't given up the ghost just yet but it also sounds like it will be a very long journey for those that decide to stay the course. Unfortunately for me I am losing too much money to sell out now so will have to go the distance and see if they can pull off a miracle.

Hope this helps investors a little. I will keep you posted with my response to them and any response I may get back from them . GLTA .