Shareholders,I have just send the following letter to the board,...

Shareholders,

I have just send the following letter to the board, which I publish here. I suggest that if anyone would like to contact the board they do so via the contact email or phone numbers on the website, www.bataviamining.com.au .

You may want the company to buyback stock, or you may want a large return of capital. Or you may be happy for the board to look to buy an underpriced resource asset. Whatever your suggestion, given the current share price which is so far below the company's cash, and NTA positions, the current situation is not 'stable' - it risks action, whether that be via a takeover, or a shareholder initiated resolution...


Attn: Messrs John Barr, Neil Biddle and Terence Smith

Subject: Announcement of Proposed Options Issue


Dear Sirs,

My Company has become a shareholder of Batavia in the last 6 months, (we currently hold 1,949,000 fully paid shares).

I write to you to request a clarification on the announcement to the market 24/10/2008, regarding the issue of options.

Firstly, what is the reason for the options issue? Given that Batavia is trading well below both its cash and NTA position (and been doing so for some time) it would seem to be unnecessary to be raising capital. If anything, most shareholders, in the present climate, would be looking for a RETURN of capital, unless a compelling reason can be put for an alternative use.

Secondly, (and correct me if I have misunderstood the announcement), offering options at $0.005, on a 1 for 4 basis, given that there are 133,284,574 fully paid shares on issue, only $666K would be raised, before costs. Hardly worth the trouble, I would've thought, especially considering the cash position of the company.

Thirdly, I don't understand the reason for making an announcement that options will be issued, when neither the strike price nor the expiry date of the options is mentioned. What are these details?


In general, I just cannot see how this options issue is in shareholders' interests, as it comes at the worst possible time to raise further capital (during a worldwide credit crunch), and most shareholders would be looking to the company to redistribute the cash the company hold BACK to them, either via a capital return, or a share buy back, rather than having to fork out more money to avoid dilution of their stock holdings.

One could argue that the best possible investment Batavia could make at the moment is to buy back its own shares, given the absurd price at which they have been trading.

It would also seem that Batavia is in danger of been takeover over by a large opportunistic company looking to corporate raid the company.


I would like to offer my support, however, for the well-timed disposal of the Gullewa gold assets, and for the support you have shown in Batavia by personally purchasing more Batavia stock on the market.

However, I am concerned that this current proposal risks alienating shareholders who are already suffering large paper losses. To say that this measure is ill-timed would be an understatement, and I would ask you to reconsider it.

Thank you in anticipation of your response.

Sincerely,

'Yaqona'