I have emailed RSL in response to the current share price trend....

I have emailed RSL in response to the current share price trend. Ian has responded with the following:

I hope that the following few points can give some explanation for the current share price and what we're doing to improve it.


1. When the original deal to place the Red Rock Resources/Orion
Exploration uranium assets into RSL was undertaken, it did not change RSL's mode of business, meaning that we are currently a retailer! This has meant there were certain restrictions on us acting as a uranium exploration company.

2. The board was presented with a decision early this year given all
the recent market circumstances; we have enough money to pay overheads for the next 18 months and do nothing, or we can get on and explore. We decided that we would do the latter which means we needed to raise cash. And in so doing we also need to do a reissue and comply with ASX chapters 1 and 2 in order to make the company a uranium exploration business.

3. Part of the terms of a reissue is that the shares have to be no
less than $0.20 at issue which means we needed to do a consolidation; not ideal but out of our hands. 20 divided by 17 (the consolidation ratio being 1 for 17) is 1.2, the current price of the shares. This ratio was set as a slight discount to the volume weighted average price of the shares over a period leading up to the decision date.

4. We have put together a package we think incentivizes shareholders
who believe in the company and so are willing to continue to support us.
Red Rock own 24% and are demonstrating their continued support by underwriting a significant amount of the issue.

5. The market has been told at some length of the potential of the
tenements the Company holds, but until this is demonstrated, there will continue to be skeptics. And this is why the exploration teams have commenced, on completion of the wet seasons in NT and Malawi this year, work on our priority targets. As with all the Company's stakeholders we are expectantly waiting on results of the current reconnaissance work, which is planned to lead to drilling this field season. All of which takes time!

6. I have been frustrated to a large degree by delays in obtaining
results from laboratories, a problem afflicting most exploration companies at the moment. So while we've been active and collecting lots of samples, there has been little to report without confirmatory analyses.



I thank you for your patience to date and hope that it will be rewarded over time.



Regards,



Ian Scott