announcement out, page-27

Miki,

I guess the "truth" will only be known in retrospect. Some will want to hear my opinion as to what is likely to happen and some won't. Thats okay. My opinion won't change the outcome.

Just watched MST handed over to administrators yesterday. That was a long time coming but many there still thought it a surprise when it finally happened. I feel for them.

I believe there comes a time where some investors need to look past making profits or even getting their money back and recognise that even lost money has value. A capital loss is worth real money to most investors. I sincerely hope that those losing money on VIL, MST etc have profits on other stocks with which to offset the lesson fee paid here.

I will say this here now because there is no point saying it after the bell has rung and when there is no longer a choice, but once a stock is suspended from trading it can be stuck in administration and subsequent processes for many years in some cases. Generally speaking the ATO will not allow an investor to claim the loss on a stock while it is in such a state. In other words not only are investors robbed of their equity but they are also denied the benefit of their losses. Talk about a kick in the teeth when you suddenly find that out at tax time. Here's a bill for your wins but you can't claim that big loss.

I'm not stating that this will occur but it is a very real possibility and the days where funding can keep this afloat seem limited at best. A farmout might just buy enough time for a last roll of the dice but even that is questionable. VIL need to find a company with cash who is a bigger sucker than themelves (to put it bluntly). My only point here is that holders consider their tax position while there are still some buyers around at 0.001c.

Could I also suggest that those who are interested, the half year accounts issued on Feb 29 provide some context to this discussion. Specifically page 14 which covers the "going concern" declaration. The next half yearly is due out in coming weeks. I wonder if the board will have the balls to make such a declaration again. Deloittes questioned it last time (see their statement) saying there was "material uncertainty regarding continuation as a going concern". VIL will have to write down yet another asset and will have spent another $300k+ on general costs alone since then. I suspect that without a placement the board will have to consider seriously if they are willing to put their name to such a statement.

This is my opinion only and should not be considered advice.