Ann: Presentation at Wholesale Investor Conferenc, page-22

re: Ann: Presentation at Wholesale Investor C... Exfiles & miiine

Agree with your views, but I dont think that gives the whole picture.

I suspect that there may be a little more to this at the moment.

I note that the next AGM is to be held on 18 November 2010 in Perth.

Refer to the following link - the AGM Ann.:

http://www.roxresources.com.au/aurora/assets/user_content/PROOF%20990CRI0205%20RXL%20NOM%20Proxy%20v2%20181110.pdf

The 2 Resolutions set down for this Meeting which I find interesting (No 4&5) and may be affecting the SP in the short term.

Resolution 4 Ratification of the Prior Issue of (20million @ $0.02 each) shares to RIO:-

This was required to remove the encumbrance (ONLY there were no funds raised) of the original requirement for a cash payment to be made before the Decision to Mine could formally be made.

Refer to:

..North was entitled to a lump sum cash payment of A$1/tonne of the mineable resources stated in a
Bankable Feasibility Study payable upon a Decision to Mine. Agreement was reached with North for the
removal of this lump sum cash payment in return for the issue of 20,000,000 ordinary Rox shares. ..

The company obviously wishes to maintain the right to issue further shares in the next 12 months:-

Refer to:

...Pursuant to Resolution 4, the Directors are seeking ratification under Listing Rule 7.4 of the issue of
20,000,000 Shares that was made on 23 July 2010 in order to restore the right of the Company to issue
further Shares within the 15% limit during the next 12 months....

From the above, I presume the Decision to Mine could not be formalised until the encumbrance (ie payment made) had been removed ...so fair enough, although this would have prevented immediate go-ahead and may have been a drag on the current SP.


Resolution 5 - Approval to Issue Shares:-

These shares are required to be issued progressively, within 3 months after the AGM (18 November 2010 i.e. before 18 February 2011).

..the Shares will be issued at a price not less than 80% of the weighted average of the closing sale price
of the Shares on the ASX for the five trading days on which sales are recorded immediately preceding
the date of issue.

The Issue is to raise working capital for the Company and fund on-going EXPLORATION activities.

The thing that I find difficult to understand is the way that the 50 million shares are to be allotted:

..the Shares will be issued and allotted to applicants to be determined by the Directors. No decision has, as yet, been made by the Directors in respect of determining the identity of the allottees other
than none of which will be related parties of the Company;

Perhaps the SP is being botted (or otherwise) to limit any rises which may make the price of the newly issued shares less attractive to whomever will be offered them???

Dont know whether this is how it works, maybe others with more experience than I could advise further.

It just seems to be one more of the unknowns (=uncertainty) at the moment, which may be having an adverse effect.