comments from the chairman

Thanks for the note. Please let me put a few of points to you.

1. The merger will create the world's largest silver company.
2. It will be the lowest cost producer.
3. Both parties are currently selling on (third party broker calculated) NAV
multiples of 1.3 times.
4. The average NAV multiple for the silver peer group is 2 times, with
outliers up to 2.4 times.
5. CDE's Total Enterprise Value divided by 2008E silver production is $48.
The industry average is $153.
6. CDE's 2008E price/ CF is 7.1 times, versus industry average of 16.7
times.
7. TEV to measured and indicated resources is 28% of the industry average.

Can you point out where we are going wrong here?

But let me add a few more points. The CDE register, with the exception of a
few NY and Boston funds is made up of individual investors. What do you
think the institutional shareholders of Pan American Silver, Apex Silver,
Silver Standard et al are going to do when they are holding shares valued at
+2 times NAV and they see the emergence of a new number 1 silver company
selling at 1.3 times NAV?

Also I imagine you will be interested to know that EVERY fund and large
private shareholder to whom I have spoken has indicated their understanding
and support for the proposal.

I support your right to have a contrary view to mine but please consider the
above points. If you would like to discuss it further I encourage you to
call me.

Best regards

Norman Seckold
Chairman
Bolnisi Gold NL