Ann: Corporate Presentation RIU Explorers Conference, page-116

Basel III directs bank to classify physical gold as a Tier One asset, which is valued at 100% of its market price (previously a Tier Three asset valued at 50%). Now unallocated gold will become a Tier Three asset. This is the "paper gold" that is traded massively each day, and utilized by the bullion banks to manipulate the price of gold. This structured paper gold has a minimal physical old content backing of about 3 ounces for each hundred ounces that are traded each day.

Basel III kicks in at the end of June and completes at the end of this current year. The change in the rules is intended to stop the massive trading in paper gold and reduce the liability (and failure to deliver physical gold) to counter parties that is currently measured in trillions of dollars (and lead to the collapse of the entire paper gold market).

We are now seeing the gradual unwinding of the paper gold market trade on both the COMEX and London Gold Market. We are also seeing aggressive traders moving in and buying contracts with the aim of obtaining physical gold at the expiry of a contract. IMHO (according to reports that I am reading) could force the price of gold to reach US$2,500 per ounce as Basel III becomes 100% operational, over the next nine months. This revaluation process will send AUC into a moonshot phase. Good luck to all longs.