annual general meeting , page-9

the company is well funded with $7 million in cash this will fund exploration.

Each hole cost's $300k to drill or there abouts. so they are funded for a lot of exploration before they need to raise more funds.

I think the idea is that with the exploration taking place they will be able to make a discovery, that will take the company to the next level.

Those investors buying now will be looked after as the risk we are taking is that, they have not found an ore body as yet.

As exploration carries on, and "IF" they do find copper and make a discovery, investors will have to pay a premium to todays price, which could be in the order of $1.00, these investors would be looking for AXT to go into production.

This is in theory, that the closer AXT can get to a producing mine, they will raise capital at a premium.

I beleive this is the strategy, as AXT do not want to dilute shareholder value by raising funds at current prices again.

I also beleive they have been approached by other companies for joint ventures, however the reason they raised $3 million at 30 cents was to be able to fund the drilling off their own backs, thus not diluting shareholder value, by joint venture.

Dilution of shares is not the worst thing for AXT, because a discovery with it owning 100% of the tenemant, is a lot better than a discovery owning 50% of the tenemant.

ITs all speculation untill they can put the pieces together, but i beleive they are onto something, and the drill results to date, to show characteristics to that of the other major discoveries in the area.

They just have to locate it.

we are 1000 metres down here...

time will tell, and i am excited as you can tell.