a more sober view, page-5

Nicholls5 and Roboshan,

I don't recall calling VRE as going into administration - it may have been that if they continued to bleed cash at the rate they were going that administration would be the ultimate result. This is plainly obvious still, if they have another 2 quarters of $5m loss, they will be in a perilous situation, even though it will not be the bank making that phone call.

I did however say that VRE would sell Carnelia hill and received a similar dismissive response at the time.

My point about the grade - and clearly it is not a profitable UG grade in the reported quarter - is that there is no comment in the quarterly about why it was low and what will be done to increase the grade. The resource grade IS quoted as 4.6g/t BUT that is not what the production grade would be after dilution. They did not say that they expected an increase in UG production grade - Roboshan is inferring that in the absence of comment by the company.

As per my original post, it is a concern that there was no comment on the grade issue.