Ann: Trading Halt, page-30

I hold a few million VALOB. The material CR is concerning, but I am not too worried for these reasons:

- Exploring is a high risk-reward game. One shouldn't be investing in VAL if you are not open to the possibility of losing it all.
- U price has been down lately (I think its just volatility, don't see any major underlying cause for the downward trend) and generally there has been lot of volatility in stocks around the world lately (e.g., to do with interest rate hikes). This has partly led to a drop in the VAL share prices. This has meant that the management will not get capital they were expecting by end of December and they need to do a material CR.
- If I were the management, I would do the CR in a way so that VALOB holders do not lose out. Common sense tells me they won't just screw the VALOB holders or they risk losing the trust of the current and potential investors. This sort of an action will not help the CR they are planning to do.
- They will need some substantial justification for the material CR which has to be good news or a promise of good news.
- The management seems to be comprised of seasoned industry professionals. Unless they are planning to leave the country and settle in the Cayman Islands, I think they would be concerned about their reputations.

Anyway, this is all my speculation. The CR could be for something spectacular out of the left field. One thing is sure, it will be an interesting month ahead.

GLTAH.