coverage, page-33

Kruiser - your concerns are appreciated and respected, however I, and possibly many others would not agree.

There are always two sides to any story and a different perspective can change everything. If you were sitting on a profit now, would you still hold the same sentiment?

Tassie was always going to be on the shelf until certain milestones were achieved with the Waterburg project which is, and will always be our number 1 priority. Drilling will start on Tassie this year I believe. This could possibly be the ace up our sleeve in 2010???

Spending millions on securing land in the Waterburg is fundamental. We all know the coal is there. The path to market will come because the SA gov't know this region is vital to their future coal supply. Buying up a sizeable footprint in the area puts RES in the enviable position of becoming a major player. I'm sure many hours of research and consideration were put in by our management team before they committed such a large amount of cash to this.

As for announcing things that can't be delivered, IMO RES has a solid history of being conservative with their announcements if anything and have certainly kept to time frames with the projected achievement of milestones since Paul Jury and Steve Mathews took over.

I questioned SM about the brevity of the PFS to which he pointed out (in typical conservative RES fashion) that the PFS doesn't really justify anything more than what was announced to market. The real detail will be in the BFS which is coming soon. How many times over can management tell us in different forms that there is significant value in the project?

As for creating real shareholder wealth (as opposed to a small % gains for the traders), it takes time. I hate to quote a cliche but good things come to those who wait. I once read a book by Robert Kiyosaki (Rich Dad Poor Dad) where he was talking about an Oil exploration company he was involved with and how he wasn't expecting to make a cent from it over the first 5 years whilst things were being established but then in the end he made 10s of millions of dollars.

Finally, my kids frustrate the hell out of me, but I wouldn't sell them for 50 cents. (Maybe a couple of dollars, but certainly not 50 cents LOL).