After reading through yesterdays posts I thought that I would...

After reading through yesterdays posts I thought that I would write a bit more as I was the only AUL shareholder at the meeting. (Another guy came in at the very end literally as we were just starting to pack up and vacate the room for the next group to use it.) On that note If you are a shareholder and there is a meeting or a site visit I encourage you all to come. Management also has to take the day off from work to attend these meetings and you have the chance to ask them questions. If they are allowed to answer them they will, and you will get much more information than just reading an AXS announcement. That is why they have them.

Regarding the DOCA The raising did not fail. The underwriters did not pull out. The problem is that one of the parties that was meant to sign on Jan 24 was showing signs that they might or might not sign. This is totally out of the control of AUL management. At the moment there is a very large number of parties all independent of each other and only thinking about their own interest who all want a piece of the pie. By nature of the DOCA AUL management are the ones who have to get everybody to all agree to the same thing and then not change their minds over a period of time while all the formalities are done and then take them on as shareholders to manage the assets of AUL and CTI. This is a monumental task to say the least. Last week AUL management came to the conclusion that with the current DOCA there might be at least one party that might not sign next week. As it is anyone party could pull the pin at anytime. By taking on the debt that was owed by Mining Lending that gives us leverage to get the deal done. So now we are in a better and stronger position than we were a week ago. It is now more likely that a deal will actually get done. Even if a deal can not be done and the administrators decide enough is enough and they decide to liquidate the CTL assets, still we are in a better position. Otherwise the assets would be auctioned off and we would simply be bidding against everyone else.

About the debt. We are not taking on all CTL debt, just what is owed to Mining Lending. The BOD is confident of coming up with the funds to cover that amount.

It is the intention of the BOD to keep the DOCA as similar to the current one as possible. They will change it as much as necessary to get it done but the less changes the simpler and quicker the process will be. From what they were saying it was my impression that the process could take anywhere from two weeks to two months.

Regarding the CR Those who who put in for the Placement offer can leave their funds with the company or have them returned. For the Entitlement offer funds will be returned. They did say that in completing the new DOCA if it works better they might just do another Placement offer without doing an Entitlement offer. If they do that option they will also do another Entitlement offer afterwards on the same terms. They were very clear about that.

Regarding ethics. Sure we all want to make money but these days there is a lot of talk about how to do it in an ethical manner. If feel that the management is doing their very best in that area. I was once at a site visit for the local Woods Point towns people. The company went to great lengths to make sure that the operation did not affect the noise level in town, change the PH of Morning Star creek etc. The Company has been taking on more women in management. I believe that having men and women working together there is a better outcome than just one gender alone. In terms of the current DOCA AUL is doing their very best. Their priority of of course AUL shareholders. But still they know that a lot of people have put Money into CTL and they are doing their very best to give them a fair deal. In fact it even came up in discussion about CTL holders. The AUL BOD is sympathetic to their plight of losing everything. It was totally out of their hands and have no obligation to assist them. Having said that It was discussed at the meeting the possibility of CTL holders buy into the shortfall offer. To me that seems fair. I respect the AUL BOD for that.

Regarding shareholders voting on things. If shareholders had to vote on every single thing and there was a 30 day plus wait to complete the formalities pretty much nothing would get done. As a shareholder you have to have confidence in the management. If not then sell out. Everyday people buy and sell that is how the market works.

Regarding a new CR It is the intention of the BOD to raise at .30 They do not want to cause any unnecessary dilution to current holders. They also want to give current holders a chance to get good exposure to the raising, hence the last one for two Entitlement offer.

Regarding information The reason that we do not have more is that at the moment is things are begin worked out, simple as that. As things are settled and agreed upon the market will be updated. My guess is that by two weeks from now we will know at lot more.

Regarding yesterdays results. In the meeting it was stated that the approval to grant shares to certain parties does not mean that they will have to grant that number. Depending on how a new deal is worked out some parties may receive less shares.

Regarding current operations Mining is still continuing at Morning Star. I think that once the corporate side of things is taken care of there will be more time for regular updates. The BOD have been working on the DOCA literally day and night and even on weekends.

In summary we are in a better position now than we were a week ago. The BOD is doing everything they can to keep the get a deal completed with minimal changes and in the shortest time possible all the while getting the best deal for AUL holders.