I understand I shouldn't be posting articles by Fatprophets and...

I understand I shouldn't be posting articles by Fatprophets and never done it before however seen as VRE is in a extremely sensitive predicament and holders would be hurting and craving for info below is their latest on the company and its situation........

==========================================

In our two most recent reports on View Resources we highlighted that the company had been battered from pillar to post by problematic production issues at its Bronzewing gold project in Western Australia. Despite the company claiming that production was seemingly back on track, developments took a dramatic turn for the worse last week, with View announcing that it had gone into voluntary administration. There are a lot of unanswered questions in our mind that we hope the administrators and corporate regulators will pursue on behalf of View shareholders.

--------------------------------------------------------------------------------
"The deterioration of View's situation, contrary to statements made by the company, leaves many questions unanswered."
--------------------------------------------------------------------------------

View Resources announced last week that it has voluntarily appointed administrators to the company, being Darren Weaver and Andrew Saker of firm Ferrier Hodgson.

We have spoken with the administrators and they said that they are working with View's management, board, creditors and major shareholders to undertake an urgent assessment of the Bronzewing gold project operations and possible refinancing options for the company.

We do not anticipate any formal announcement being made for a period of about three weeks, although numerous meetings will take place. So Members should not necessarily be concerned by an immediate lack of news.

We understand that the first meeting of creditors will be held in Perth on Wednesday 20 February. Following that, a proposal meeting will be held around mid-March, at which time creditors will decide the future of the company.

We also understand that proposed and then aborted sale of the company's 30% stake in the Carnilya Hill nickel joint venture will also be the subject of review by the administrators.

View's announcement on 6 February stated that the sale of the company's 30% stake in the Carnilya Hill project for $25 million was set for imminent conclusion, yet this was far from being the case. This sale would have generated immediate proceeds of $22.5 million that would have cleared any debt owing by the company.

Interestingly, the administrators intend continuing operations at the Bronzewing gold project with the ongoing assistance of management. It is not prudent for us to speculate on whether this is a positive future signal.

As we pointed out in our MidWeek Alert last Friday, the basis of our most recent analysis was the company's December 2007 quarter production report that was released on January 25. In it, the View board commented that operationally things had improved significantly during the December quarter, primarily due to strong production during the month of December.

With respect to our assessment of View, we reiterated the caveat that the company had to demonstrate sustained improvement with respect to its Bronzewing operations in order to regain market credibility, but that the company seemed well on track to achieving this.

Most importantly View had to achieve cash flow positive status as quickly as possible. All new mining companies start off with negative cash flow, but the key is to achieve positive status as quickly as possible. Otherwise this becomes a drain on the company's finances.

View commented on January 25 in its December quarterly report that gold production during the month of January would fall below its 10,000 ounce target, but that was not of major concern as overall March quarter production would still be in line with forecasts (i.e. 30,000 ounces for the quarter).

Yet just 12 days later on last Wednesday, February 6, View announced that gold production had in fact fallen substantially below par (6,500 ounces instead of the budgeted 10,000 ounces) for the month of January.

We reiterate that on the date of the December quarterly's release, January 25, (less than a week before the month's end) that the company must have had some idea of the looming production shortfall for the month of January, but instead gave no indication.

This is most concerning to us, as we can only base our analysis for Members on the quality and accuracy of the information provided by the company, not only to us but the market as a whole.

We of course were very concerned about the production problems View was encountering from the start, but commissioning problems are common in the mining industry. The key is whether a company can overcome them. In View's case, the information that they conveyed to the market in January was positive with respect to turning around Bronzewing's fortunes.

We also felt that with the $22.5 million sales proceeds from the Carnilya Hill nickel sale that the company would have a solid buffer to further tide it over.

We understand that Bronzewing is by no means an 'easy' operation. Operating costs there are very sensitive to fluctuations in head grade and if below par ore is delivered to the mill, then costs rise dramatically.

It seems apparent that the problem lies not with the Bronzewing plant, which apparently is operating efficiently and close to name-plate capacity, but with the ore grades being delivered to it.

The key, if the project is to continue, will be to improve the overall ore grade to the point that the operation becomes cash flow positive. This will require more time and money and the support of the company's major shareholders will be crucial in achieving this. We will not however speculate further at this stage about any possible outcomes.

We will await further comment from the administrators and keep Members fully briefed on all developments.


--------------------------------------------------------------------------------