copy of letter

Hi all

This is a copy of the letter sent to the VIL board.

Hoping that the contents of this letter represent the thoughts and views of the majority of VIL shareholders.



VERUS INVESTMENTS LIMITED

Directors and Management :

I am writing to you on behalf of myself and a great number of VIL shareholders consisting of well over 100 in number.

We, as shareholders, are extremely and deeply disappointed with the unsatisfactory performance of the board/management. The current share price mirrors the VIL management’s poor performance, being at its lowest of $0.004.

From the information divulged by management to shareholders, it would appear that the current company portfolio of O&G projects is of considerable value. However, in some instances, some projects are not properly managed, and in particular, the decisions taken with the Fausse Point project have been incorrect.

It has come to such a desperate situation, that we the shareholders, as a united body, are not only requesting, but demanding an immediate and comprehensive report to be released to the ASX for the benefit of all VIL shareholders. We require a detailed report outlining every aspect of our company’s accounts, available funds, current prospects, future prospects etc.

Kindly respect shareholders wishes, and do not release an “empty” reply similar to the recent Investor Update which only portrayed delays and more delays. We require a constructive and comprehensive report containing every detail such as specific dates, production levels, current/proposed action etc for every project.

For example, we are extremely disappointed with the poor handling of the Fausse Point project which has been in progress since 2009. To say that the Fausse Point project has been mismanaged is the understatement of the year. This project needs an immediate solution without any further delays, with minimum dilution of the share price. Also, priority must be set by management to bring Fausse Point into production immediately. It is rather puzzling why shareholders’ funds amounting to $1.2 million were wasted on an unknown project such as Lyons Point just for the sake of 15% stake, when these funds should have been wisely and prudently spent on the established Fausse Point project, heralded as the company maker, with a substantial 72% holding.

Another matter which is rather puzzling and questionable is the resignation of two directors the day after the AGM, with a new non executive chairman elected the very next day after the AGM. Is there any reason why these changes were not discussed at the AGM. Perhaps an explanation is due to clarify this clouded situation.

In view of the obvious mismanagement, the turmoil caused by the resignation of two directors immediately after the AGM, the appointment of a new chairman, the disturbing and diminishing share price, shareholders have discussed the possibility of applying SECTION 249D AND SECTION 249P of the 2001 CORPORATIONS ACT to resolve the mentioned problems.

However, in adopting the “fair go” attitude, shareholders are in agreement to give the board/management the opportunity to attend to our demands as a matter of urgency, within two weeks.