Ann: SLR: Silver Lake Acquires Red 5 Shares, page-109

Hey Winmore,


How did you come to the conclusion that x2 current price is fair?

Over the years I have heard so many things from valuing a small business to major interests with complex income streams - like ours. Seems that depending who you talk to the number and formula used ultimately comes down to the question of "Are you buying or selling?".

Give the long life of the mine and surrounds and that we have proven the resource and extraction method, surely these numbers need to come into the equation. Recent news on the 30% ownership of the tenement in the area also adds to the picture in a small way. Given the relationship we have, we might get the mill throughput and double dip by getting paid for the processing and the profit.

Given the pain of dilution over the last few years, I feel that I want my lb of cash. I didn't invest to help a friend out, I invested in the people and future profit of the business and want to get paid for the risk I took with my cash.