Nose Dive, page-23

I think we are fortunate that we have something like HotCopper where we can at least talk with one another about this. It gives us some chance to actually make some impact.

It is interesting that 'idlehands' has also been on the phone to Henry K and has asked for the same thing that I did ..... perhaps there have been others?

I think the issue can be broken down into 2 parts. Firstly, establish that there are plenty of share holders who want the Bergen agreement terminated .... and then secondly the way to go about doing that.

I would like to see the company be responsive to share holder concerns. To that end, if concerned share holders rang and/or emailed [wrote] to the company requesting they discuss Bergen again in the next director's meeting .... but this time not in terms of whether or not they will continue the arrangement ... instead to discuss how the company might extricate itself.

Personally, I would prefer to keep the number of shares issued as low as possible. The line of credit available from Bergen is $4 million. So far the company has only drawn $1 million and paid $100,000 on top. Thus far Bergen has converted $400,000 and has a credit of $700,000. [They first entered the register when the SP was 18 cents ... so it is easy to see how much damage they are capable of]

In a very early conversation with Henry K about Bergen he admitted to me that SOC "wouldn't do this again" so they are fully aware that it is not a good arrangement. However, the fact remains, that the way is open for SOC to continue to draw further funds from Bergen. If they did so then the number of shares on issue will be like confetti at a wedding by the time this is finished.

The idea of doing another capital raise @ 1 cent, specifically to oust Bergen, is a reasonable possibility. There might also be other ways to raise the money. Selling some of the Mt Adrah prospect, selling some of the SUGEC tenements are all lines of thought. However, I think such things would be unnecessarily hasty. The share price is this low not because there is anything wrong with the fundamentals. It is this low because Bergen has used its weight of selling against the best interests of other share holders. Take them out of the mix and the share price, I believe, would begin to better reflect the intrinsic fundamentals of the Company.

That might take several months of patience but in the end a capital raising at an improved share price is very likely I think.

I think the first thing we need to do as a group is to make it clear to the company that it is not just a couple of disgruntled shareholders unhappy about Bergen but rather that view is held by a large number of share holders. I am urging anybody with a stake in this and who has a strongly held opinion about this to voice their concerns with management. At least, by doing so, we will see how responsive the management actually is to share holders' concerns.