Ann: $3.0 Million Share Placement, page-6

A 20% discount on the share price is a standard pitch from Pattersons - we have just been through it with AVZ. We did not take up the offer, others did. The price is falling again. Without clear plans to get to commercial mining, and off take partners in place holding multiple funding rounds are counter-productive.

Plan your mine from the start, get production going early and do your drilling once small scale is up and running and you have proven to the market you are serious. When will these companies understand this?

AVZ has been drilling like mad, it has phenominal resource - the market does not care. Why? Because the market does not believe that management are serious about creating a full scale mine with profit potential.As a modern developer, you must prove you are serious before the market is going to put serious funding into your operation.

We hold a very minor stake in SVL, and a minor holding in AVZ. We would like to see these companies develop serious plans, and keep to timetables for us to become serious about investing with you.

SVL has failed to do this so far.