chicken little, page-3

ST

A pullback in the price of gold was expected in the short term, eg Marc Faber and other commentators on the Financialsence website. I will stick with my pick that gold will trend up over the next few years and give holders profits. I am not worried at all about such pullbacks, which could be quite large if the US goes into a depression. Rightly or wrongly I think governments inability to contain excess credit creation and money will mean that gold will be worth much more. In addition we have rising a tide of Asian prosperity to push its price up.

So given the prospectivity of PRE's gold tenements in WA (and drill results todate) I am willing to continue to maintain my speculative PRE shares. I can not see myself selling any of my three goldies in a depression, should it occur.

loki