general meeting 17th august 2011

Hi guys,

Apologies as I don't have enough time to post a detailed message on SBL. I am a holder and excited by their recent start of production in Ghana.

However, I am truly over management telling us that they don't need capital anymore. I believe in the last 12-18 months, management have stated they did not need cash, but subsequently raised circa $30 million in the space of 12 months. The last raising was truly disastrous too.
Agreeing to raise at $0.033 and then being forced to raise at $0.025 a few days later.

Anyway, I am voting against the resolution at the upcoming general meeting. I will be voting against the ratification of the prior share issue. Hopefully this message will get through to management in letting them know they need to buckle up and stick to their word.

If shareholders vote "for" the ratification of the prior share issue, it means SBL will have the flexibility to issue securities up to the 15% annual placement capacity without the requirement of prior shareholder approval.

It does not mean if shareholders vote against the resolution, SBL will not be able to raise funds. However, it means SBL's management will have to provide a decent proposition to existing shareholders and ask for future permission to raise funds.

This is beneficial for long term shareholders as SBL might have to structure any future capital raisings around giving a greater share to existing shareholders, rather than giving heavily discounted stock to speculators and their mates so that it can be dumped for a quick profit.

Given Bill has mentioned time and again they won't be needing funds anytime soon, it won't hurt to vote against this resolution. This is the chance for exisitng investors to provide a strong word to management to buckle up their capital initiatives. If not for their poor shareholder communications and poorly timed capital raisings, SBL could be trading on a higher price (i.e. possibly same market cap., but with far fewer shares).

Investors should vote against the upcoming resolution to send a message to management. It will force them to finally listen to long term investors. Don't get me wrong. I see value in this company, however, I am rather disappointed with their capital management abilities.

If you don't have your forms, contact the registry straight away to ask for a generic form. Vote against the upcoming resolution.

Happy investing.