proxy form

By now everyone should have received their Proxy form....Shareholders should vote AGAINST all resolutions..

Both the 15% placement and the SPP are set in stone and cannot be stopped or changed.......we are voting to express our dissatisfaction with directors at their blatant disregard for company strategy and their linning up to fill their own pockets at the expense of mum and dad investors!!!! eg A Rigg is going to buy 5.5X the number of shares in the placement as he has bought on market and increase his holding from 150,000 to 983,334 shares.......


Resolution1 would give directors the ability to place 15% or 13.5mil more shares at a discount to institutions and sophisticated investors.....it would also double to allow them to place shares to directors if resolution2 fails..

Resolution2 would allow directors to place a couple of million shares to themselves....

Resolution 3-6 is where shareholders vote on individual directors receiving shares from resolutions 1 + 2

It is only fair that directors suffer dilution like many of ELKs shareholders will, especially considering it is their poor performance that has resulted in the current situation.....

ELK has portrayed the current economic environment as the reason they were unable to do deals...RUBBISH!!!!!....
Managements own valuations as presented in the investor presentation, released while they were out there trying to dump the company with institutional investors at 9c per share, when current futures prices are used(prices that have the current economic downturn and wyoming discount factored in) value the Grieve chemical flood at approx $4 a share......now I certainly dont expect NPV to be paid especially in this environment, but ELK have flogged the entire company of at only 1/40th or 2.5% of the NPV of 1 project...
What a scam!!!!!

and what about that company strategy???? from the investor presentation released while ELK were in trading halt dumping shares at 9c..........."To form JVs for development and exploration; extract value and share risk"
.....no mention of diluting the heck out of shareholders through capital raisings......
from investor presentation Jan 2009........"Seek farm outs to reduce risk and provide exploration funding".."Last capital raising March 2006"......Dodgy!!!!!!! and that last capital raising raised $11.7mil @65c to develop the upper sands, they spent all the money without drilling the $800,000 well to test them!!!!!!!!!!

So this might be shareholders last chance to keep some form of control over ELK.....if management get away with this there is nothing to stop them turning around later in the year and for example, announcing a 1;1 rights issue at say 30c.....divide the number of shares you have by 3 and put a $sign in front and ask yourself whether you would be willing to put that amount of money into directors hands to avoid dilution, for most of you I suspect not.....

SHAREHOLDERS SHOULD VOTE AGAINST ALL RESOLUTIONS!!!!!!!!