Ann: Trading Halt-AVQ.AX, page-125

Hi WB

Absolutely agree with what you are saying.

I'm not saying that AVQ isn't worth investing in I'm saying that in my view the game has changed and the upside has been curtailed.

Because of the shareholder register structure it is now more likely to be set up to be packaged up and sold to a bigger Company after they get Isabel back (probably likely) and some work up on SJ.

Therefore I think the upside is now CAPPED at what it can be flicked on at prior to years of running an actual mining operation.

If they after they get it back they got an offer for 75 cents or 90 cents as you say then the independent reports would all support that I'm sure . They wouldn't value it at $1billlion + at that point but may be able to support $300 million or so. Therefore the board can hand on heart recommend the offer to its shareholders.

The average Joe makes double or triple money and provided they haven't been in it suffering for 5 years that's a good deal. You won't have a huge group of disgruntled shareholders because they all should have made money.

The inner circle will of course make $53 million (75 cents) to $82 million (90 cents) on their $5 million stake. That's what will be driving the company now IMO.

What my point is that if you buy today your risk is that AVQ doesn't get Isabel back. (that is still a risk). But when you are assessing that risk you shouldn't look at the upside as $2 or $3 or $5 a share because I think its now capped at a lot less than that because of all the above.

So from now if you believe that the risk is minimal that they don't get it back then a double or triple of your funds is a great return.

If you think that its a higher risk that it won't get it back you shouldn't be dazzled by the potential of 10 times your money etc and be realistic on 2 or 3 times.

Cheers
DJM