The ASIC Question:We refer to the Companys 22.93% interest in...

The ASIC Question:

We refer to the Companys 22.93% interest in Fortitude Minerals Limited (Fortitude) and the International Business Companies Registry of Belize website (IBC Belize) where Fortitude is listed on the IBC Belize Struck Off List 2010.

In light of the IBC Belize Struck Off List 2010, please respond to each of the following.

1. Does the Company consider Fortitude being named on the IBC Belize Struck Off List 2010 as material to the Company?

2. If the answer to question 1 is no, please provide a detailed explanation of the basis on which the Company does not consider it to be material.

The response from Slythe:

2. The filings of Fortitude and its subsidiaries in the various jurisdictions are supervised by Niren Blake chartered accounts in London. Niren Blake have given their assurance that appearance in the strike-off register is a temporary status which can be rectified upon payment of the requisite filing fee. Niren Blake have confirmed that they have fully protected Fortitudes name and corporate status.

So, CVI shareholders are expected to believe that Fortitude is a worthwhile CVI asset when it can't even pay it minimum yeary filing fees? Not sure how much it is in Belize but over here in Oz it is about $200 PA for a P/L company.

I personally do not think that ASIC will accept this. Assurances from some random accountant in the UK who is under no obligation to do anything hold no water. The legal status of Fortitude at the time the announcements were made by CVI was that Fortitude was "struck off" and that is the way it should be viewed by ASIC and reported by CVI.