price, page-16

Chibrown

Here is where I have trouble with your posts.

They all sound rather logical and there is no doubt that doing business is a bit risky to say the least in Indonesia.

IAU had an agreement/contract with an Indonesian company, which they funded, in a joint venture to explore and develop a mine. Said partner had specific performance to do something in return. This was and I believe the only way these type of ventures can get off the ground for foreign companies. Nothing wrong, stupid or unwieldy about that and seems fairly straight forward. The joint venture partner did not live up to it's end of the bargain and left IAU at the alter.

Can you explain what IAU are suppose to have done to mitigate this. The answer is not much more that it did. There is no clairvoyance in the contract people have to perform in accordance with the contract.

All along IAU have stated in there releases that risk existed.

I have a real problem with you surreptitiously calling IAU management liars.

I also have a big problem with you implying that Paloh has sold his shares which gives the impression that he is doing a runner and that IAU management are incompetent. There is a 12 month escrow on Paloh's shares and what you said was disingenuous.

Current cash only backing is at $0.21 not the $0.16 you are touting. In fact i would hazard to say that given the $50m that is owed to IAU but PT IMN plus other assets the valuation is closer to $0.30. However, I am prepared to concede a risk premium.

I also have it on good authority that this matter is now in the hands of the police on two accounts one being fraud and the other theft. More action to follow.

Your points eg they could of disclosed that PT IMN had the potential of being taken over is like saying that they could of told us it was going to rain tomorrow and is ridiculous. The agreements that IAU had in place are enduring and it didn't matter who owned PT IMN the agreements would still be valid.

What you don't seem to understand that this is a criminal act one that no one could foresee but while always being possible you would never do anything in life if you thought like this all the time.

It's very easy to speculate what someone did is wrong to lead up to this unfortunate position but harder to prove it.

I'm not foolish or arrogant enough to think for one minute that this is a done deal and that things will get back to normal any time soon but I have to say all the guess work in the world as to what might have happened and what should have happened after the fact is a lame approach.

I just wonder what would have happened if this deal went through without a hitch and PT IMN turned out to be honest brokers. How people would be saying how brilliant the IAU team were in the way they handled this. Of course none of that would be true given they would have start from exactly the same position.

Cheers
BW