Pending todays AGM and announcement by Friday on capital raising...

Pending todays AGM and announcement by Friday on capital raising I would like to outline the positives going forward.

1) we will retain 8 licences in Mongolia whilst only two have been initiallyt explored 1 is highly positive with a 60m seam. Who knows where this will stretch and how deep the rest is and how wide. Is it the only seam or is there another below.

2) Current mess and timing is being blamed soley on management but we don't know the facts as why it took so long to go from exercise to agreement on terms (and we may never know).

3) Timing is critical as I am sure that there licences are in high demand and is company did not do something urgent we would be back at a shell.

4) Works will be underway fast (arial study and drilling over winter)

5) Most Mongolian coal stocks are well down from satisfactory valuations.

6) main licence of interest to me is 10566x and 13600x as is well located to proven resources and close to chinese boarder. We know that northern licence 13879x and 13581x have proven resource (TEEG).

7) When you compare CEO to the likes of AKM they have a MC of $186m based on a 330k Mt (HARD COKING COAL reserve) on land size between their licences of 50k ha. Now using basic maths of something with a density of 0.74 gram/cubic centimeter you would:

1 tonne / 0.74 = cubic meters so lets just say 1 tonne of coal from 1 tonne of land (allow for washing etc...

Say 100 metres Depth of coal (BTE 1 and BTE 2) and say it stretches for 100 metres and is 20 metres wide (I think these are rather conservative). thats easily 200k Mt.

So lets see what happens between Jan and Feb 2012.
Draig resources, 2012 the year of the dragon...

Also wonder who is going to be the majority holder of new shares and if our No1 holder takes up their rights to purchase new shares to retain their substantial holding.