meeting report and questions to tim lagdon

Hi all,
Before reading this post.... I would urge all of you to read my post on 16th of last month wherein I give a full and frank precis of my own personal feelings toward the Directors Incentives and Performance shares.
I give my reasons for not sharing... entirely... the fury some posters harbour toward the above Directors benefits.
At best I was irritated at the magnitude, generosity and the low setting of the bar, for the benefits to trigger.

In particular, the last paragraph of the Sept. 16 post suggested a way to register disatisfaction with the proposals... with specific reference to RAISING THE BAR.

That said... now for the meeting results:

The Chairman of the meeting ( Mr. Bowen ) appeared to feel the need to temper potential vitriol by announcing the results of the proxies sent in.... given the results were overwhelmingly in favour of the "house".

RESOLUTION 1.... 98.7% YES.
RESOLUTION 2.... 95.4% YES.
RESOLUTION 3.... 98.4% YES.
RESOLUTION 4.... 89.3% YES.
RESOLUTION 5.... 94.8% YES.
RESOLUTION 6.... 94.9% YES.
RESOLUTION 7.... 86.0% YES.
RESOLUTION 8.... 96.0% YES.

I was under the impression we were to be given a run down on events past, present and future... my only reason for attending... not to challenge any proposal, for the reasons as stated in my Sept 16 post.

The entire meeting consisted of voting on the Resolutions .... and nothing else.

I therefore decided to take something home with me, rather than simply attend a ballot... so I engaged in conversation with Tim Lagdon for approximately 15 minutes and asked the questions to which many posters ,seem to want answers.

I must stress, the responses are NOT Tim's exact words, but are my interpretation of what can best be construed within the confines of a quick conversation... mentally preparing my next question whilst trying to absorb the answer to the current question.... not easy.

Question 1:
There seems to be a lot of disappointment with the Placement...particularly regarding the exclusion of current shareholders... to benefit "sophisticated investors". Why were shareholders excluded?

Response:
If we had gone to shareholders with a placement price of one cent... many of them would probably have sold their existing shares at the time ... approx. 1.4 cents... in order to fund their placement parcel.
This would have had the effect of driving the share price down .
The sophisticated investors are people who intend to stay for the long term.
Excalibur will not grow through retail investors... it will be money from institutional investors.

Question 2:
Where are we at with regard to drilling results?

Response: Unless anything major eventuates in the meantime... we expect to announce results on the Diamond drilling holes ...as well as the RC Drilling of the Shallow deposits within the month of October.
If something extraordinary arises ... we will announce that to the market as soon as that matter comes to hand.... otherwise we will wait until the program is complete.

Question 3:
Is the current drilling program aimed at shoring up... confirming... the previously announced 1.2 million ounces or increasing this figure?

Response: We have previously drilled at 20 metre intervals... we are now reducing this to 10 metre intervals with a view to both confirming and increasing the figure.

Question 4:
What merit is there in excavating the shallow deposits... extracting the gold content... to fund future activity?

Response: Before that can be done, we need to get approval to carry out that activity... we would require substantial funds... we would need to do a feasibility study to confirm with a great degree of certainty that the amount of gold we think is there... really IS there... before we could attract the funds.
The feasibility study would need to take us from an "inferred" status to an "indicated" status.
All up... in excess of 12 months.
Its not simply a case of " go in... dig up... extract... get out gold... bank the money. It all takes a lot more time and money to do that than what people may think.

Question 5:
Given our drilling results to date, would we be of potential interest to other parties?

Response:
At the moment we would be an attractive Company to several parties but before anything concrete could be expected... we need to do a lot more work in order to convince the market that we really do have something to bid for.
We need to get our Market Cap. up to that of, say, "Integra"... or "Catalpa"... both of which are near term producers. Investors need to see a market cap somewhere near $150 million to $200 million... before they will become involved.
Institutional investors are more interested in Market Cap... not a Share Price... you have to think of the two separately

Question 6:
There is a tidal wave of opinion... my own included... that with regard to the Performance Shares and Incentive Options... you have set the bar VERY LOW??

Response: Would you feel the same way if the share price was $1.50 and we set the bar at $3.00?
Share price increase is a very slow process.
Some shareholders are of the belief that the share price can jump extremely quickly.... but will it hold there?

All of that said, we intend to be mining by the end of next year... it is going to take a lot of work to get there.
If we decide to build our own plant, we will need between $30 and $50 million.

End of questions.

I can see how easy it is to become engrossed in those aspects of EXM which annoy us... the forever low share price.... the seemingly slow progress.... the apparent greed of the Directors... and so on.

Remember, my shares have owed me between 4 and 5 cents for 5 years or more...

When I read the thoughts of many Hot Copper posters... all of whom are savage on the EXM management... I can see where they are coming from.... so many other shares driving forward and upward.... whilst EXM languishes in the murky depths.

The share price will rise when good announcements are made... but Management simply cannot manufacture good announcements... they have to be real.
Then there is the school of thought that EXM has lost credibility through past management... well the past is the past, and although it may seem that only bad management has transpired in the past ... it is past management that has delivered the project to Tim Lagdon and the new Board for future development.

We have , on the one hand, shareholders who are largely day traders interested in a SHORT foray with EXM shares... only to be thwarted in their endeavours... shareholders who have not the slightest interest in the long term... and are of the belief that the sharemarket is in place primarily as a means to provide gambling oportunities.

We have on the other hand a Board of Directors who have an enormous vested interest in driving the Company to greater heights.... and want to be rewarded extremely well should those heights be achieved.

I have a choice.... sell out... cut my losses and run with other stocks.
OR
Stay put.... endure the annoyances... wait for better days.

What I should NOT do is ... stay put and complain.

Cheers.



The AGM will be in approximately 6 weeks, at which time we can expect more information .