A very good morning to all FML shareholders. Like you, I've been...

A very good morning to all FML shareholders. Like you, I've been giving much thought to the future of the company if we vote down the proposed deal, and how things are likely to progress if the deal goes ahead.

After reading the comments on HC over the last few weeks, I'm concerned that maybe there's been what is sometimes called a 'herd mentality' developing (and I don't say that in a derogatory way). I just get the feeling that the doubts and confusion which we are all feeling have led to negative views expressed by some people (both holders and non-holders) building up a head of steam and influencing others to look only at the negatives rather than the positives.

My personal view is that the deal will dramatically improve the future of FML. We have for years been constrained by lack of capital to develop what we all believe to be some very rich resources - resources which with adequate capital to develop them could turn FML into a leading highly profitable gold producer.

Well, fellow holders, I for one believe that the Shandong deal will deliver that opportunity, and it is probably the only opportunity that we are likely to get in a world severely constrained by debt and extremely limited opportunities to raise capital.

We have the mineral resources in the ground, the human resources to find and mine and process the minerals, and now we at last have a chance to fund the rapid development of the company. Instead of looking for the negatives, just imagine what can be achieved with an additional $225 million capital. Substantial improvement in mill capacity and reduction in production costs will quickly lead to improved profitability, and a rapid ramp-up in exploration and drilling will at last prove up the resources which we believe we have. Only then will the market give a fair value rating to FML.

Everybody is entitled to their own opinion, but I implore all of you to not be influenced by the negative thoughts of others, and to carefully weigh up the options which we now have. Nothing is certain until it happens, but doing nothing because of fear of the unknown results is irrational. No business would grow and flourish if everyone sat on their hands because they were uncertain of the outcome of development plans.

Thanks,
Mike