Ann: Twin Hills Operations and Production Update , page-55

re: Ann: Twin Hills Operations and Production... "i've been dancing with the devil for years and was always successful.these are just formalities."


Fast, I'm asking shareholders to question why is the company (AYN management) dancing with the devil (investment bankers), particularly during ramp up? Why is the hedging necessary? Why did they enter into it?

The price of the forward sales isn't all that relevant (unless the silver price takes off and they get a margin call perhaps).

What is more relevant is AYN's commitment (and the terms of this agreement) to deliver certain amounts of silver on specific dates over the course of 2012 (700,000oz in 12 months). If the company defaults and can't deliver, Houston YOU may have a problem. So what are the details, terms and conditions?

AYN has stated publicly that hedging started from January 2012. So how many ounces did they need to deliver in January (if any) and what was production in January... a marked improvement over the Oct-Dec months or more of the same?

If my understanding is correct, on Jan 31st AYN stated in their quarterly report that they would achieve design production rates in the March quarter. Three weeks later they changed this to the September quarter.

So, how does this production delay affect their hedging commitments? What are the costs for breach of contract and what happens if there's an outright default... to deliver what is agreed upon to these fine young men offering their financial services?