intrigue, page-2

Bmloho,

Good questions and ones I have asked myself. Yes, on paper at least, the directors do not hold much interest. But there are some interesting connections.

Let me explain. Mr Lindsay Colless, AAF director, is also a director of a company called Newland Resources.

Newland Resources had stated in the past they own a 30% interest in Sino Mining Asia. (see here http://www.newlandresources.com/pdf/quarterly/NRLQ-Sep05.pdf )

And Sino Mining of course hold 200M shares in AAF. (see latest AAF top 20)

So, while Colless himself doesn't appear to hold much direct interest in Newland, or even AAF for that matter, there is quite an interesting connection (CFO and Chairman) in Newland Resources.

On the one hand, you can see that as a good sign, the directors feel our pain or our gain. On the other, there's potential to see this type Newland investment vehicle as management buy out by stealth. Of course I'm not suggesting anything untoward is going on here, but here is an interesting ownership structure going on and worth asking Colless himself!

On the subject of capital reconstruction, I see share consolidation as a reasonable prediction. With so many shares on issue it could make raising more funds for new projects difficult without some consolidation in future.

A