Ann: Corporate Update, page-19

But why? Over the last year I have called the Chairman again and again, stated that I do not like dilution but that a CR might be necessary anway because finances are still bad. And still they were able to hold off the CR. The problem with that is that all that time there was the sword of damocles hanging over Troy and the share price was depressed due to that because everyone awaited a CR.

Did it make sense to wait? Are buyers of the new shares really better off buying at 10.5 cents? Could have bought at the same price or lower not that long ago.

Troy could have done without a CR but only at the cost of continuing ´mining in the Smarts 3 pit at maybe unsafe conditions. Would that make sense? Finally the sword of damocles gets cut off, CR is the reasonable thing to do here. When to do a CR if not now? Best bang for the buck.

Also I note that the CR is as small as possible, is supported by a change in debt repayment schedule. The price is very low, but I would rather blame us shareholders, why did we not embrace what Troy has and pay up to get the share price higher?

To put things in context: 5m at 10.5 is 47.6m new shares vs 459.5m shares previously. Issued balance after CR: 507.1m shares. 459.5/507.1 = 90.6%, so we are giving up 10% in exchange for a better balance sheet and actually making it into the future and enabling us to get to the 5-Disallowed the new deposit at Ohio Creek could give us.

The share price was depressed for some time, fait accompli, may not go much lower and maybe surprise. This really should be a non-issue for any normal company.