what a fuss

The various reasons why I believe she is a sell are best summarised in the following:

1. In October, when all and sundry were stating that VML and RAU will be the same if not better that was as it stood and still does, completely incorrect IMO. I shared the below which was and still is, my own opinion in reaction to a VML analogy:

I wrote in September:

"As of 21/06, VML had 15.8mt Inicated/Inferred JORC at 0.31%. They have no moly and a small scheelite concession. Based on an ore throuput of 1,300,000 tpa and waste (ore) of 3 via the x ray sorting process you then have saleable WO3 at 350,350 mtu. With the head grades at 0.35%, a recovery rate of 77% and a concentrate production of 5390tpa, assuming a mine payback of 2.3 years we have a PCF multiple of 1.1. The treatment (ie economics) of the ore, based on available figures,then provides a capex of $125m and cash cost of $125 mtu. She is IMO currently not viable without a very large resource upgrade."

"The market has become far more sophisticated when calculating the Australian Tungsten specs. QOL has a MTU cost US$1/MTU due to their moly credits compared to approx. $250/MTU. VML have no beneft of a credit hence their unit costs are much higher. They also have high capex costs associated with low grades -this is why any MOUs have been withdrawn from both THR & KIS. The CGM of KIS also makes it very difficult. One also must recognise that VML was to some extent an advanced project on listing. "

2. I believe the current managment can only be defined as the ultimate disaster in listing a company at 20c only to see her go down to 1.5c and almost broke. Everyone would agree this was the case. Why?

Again in September I wrote:

"I think he just realised in July....that "boardroom presentations" exist. IMO, thery have set a record and it will be ongoing....2.5c is the key. They appear to be charlotans IMO on how they have dealt with the non renouncables/free options and the allotment of options to themselves at an exercise price at 25% with a date of 3 years from the GM.........c'mon. It is a disgrace IMHO, and thre largest "Chinese/Malaysian" investor hold under 5%....then you have some that have bought $30K at a 15% discount to what you can pay for. Even their secretary is receiving 5m of options at the same rate??...after 2 years of service with a company that has completely failed and is now well below the IPO price?? 20c?

Non renouncables at (from memory 1.3c) and free 2:1 options? With a company that will never produce IMO and compare themselves to Vital? It is IMO an ugly precedent. We all know who is Zeus...director resignations etc."

In summary on point no.2:

a) The No1 shareholder of RAU is Zeus who are entirely made up of directors which massively benefited from the non renouncable issue made earlier this year both in RAU and the options. In other words, they took up their own offer and are still the No1 shareholder by some way meaning that they and a few others control a large part of the registry.

b) They then supplement the non renouncables pre AGM with a "surprise" placement at 15% less than the current price at the time of the AGM to overseas investors each of which now own 1 million shares to from memor,y 22 million. The highest shareholder who received these shares received a large amount which totalled under 5% of all shares on offer meaning that he could then trade these shares without any notice having to be received by the ASX.

c) The BRRs came thick and fast and continue to do so (a company needs to pay $7K per annum for unlimited use) with Kelly IMO ramping extremely hard - the words "very very" come to mind. Shall I talk about diamonds?

d) Historically, post non renouncable issue, the options have traded at a severe premium. The registry was captured with little trading.

e) At the AGM a number of resolutions were passed:

The Corporate Advisor (Max Carling) received 30,000,000 options at 2.5c, 3c and at 3.5c ex due to expire in 3 years for past service. Even the Secretarywas alloted 5,000,000 options with an ex price of probably around 3.5c due to expire in 3 years not to mention the options provided to all Directors under the same ex date and price. ie 24 million of them!

I will not go further as each and everyone of you will have to make up your own mind about the ethics of such transactions and behaviour.

3. When comparing and contrasting companies at similar stages RAU are at, I have when needed, felt the compulsion to attempt to dilute the incessant ramping such as Siamese Parrot stating and I quote, "the gold alone is worth $425 millions dollars". The real issue I was debating was the un-needed analogy by the company that they are another VML. Onto the gold, in 2006, RAU stated that there would be a pre-feasibility study to be completed within 2 months. It never happened.

"I think some of of you are getting emotional. I am endeavouring to share my tungsten expertise - I have no agenda. If you want to speculate that RAU has grades double the size of VML go ahead. VML is a real concern as she has no moly and through agressive drilling, ala THR, are increasing their tonnage while lowering their grades. VML's named possible production process will be xray sorting flotation.Look at THR's demise , their JORC grades and tonnage - believe me, tungsten plays are extremely complex. Tin is always found with tungsten - and has not been a viable bi product with any hypothetical economics. VML has cash costs (net of credits) at approx $125/MTU - far larger than KIS, QOL or THR. RAU will need moly and I'm sorry, but no-one with any experience at all would even state it is remotely possible that their gold is feasible.

Anyway, conversely,look at HAZ's numbers that were released a week ago and check the market cap and the stage they are in:

The results include 39m at 0.26 per cent tungsten from 14-53
metres with 6m at 1.10pc from 40-46m and 1m at 2.67pc from 44-45m, 20m at
0.47pc from 0-20m with 7m at 1.01pc from 4-11m, 35m at 0.21pc from 0-35m
including 4m at 0.72pc from 0-4m, 13m at 0.26pc from 9-22m including 2m
at 1.2pc from 11-13m.

Again, I am just mentioning these figures so others can compare and contrast when figures come out so there can be some sensibility."

Please check links:

http://sa.iguana2.com/cache/6167aebc73a18a322364022fb036924b/ASX-RAU-254824.pdf

http://sa.iguana2.com/cache/27f71f86376a68bdabda22d3e213447c/ASX-RAU-248012.pdf


4. More management issues and this could not be more clearer:

From RAU's 03/01/07 announcement they stated:

a) That there will be a strategic relationship" that was hoped to be developed in the "New Year with an un-named Chinese smelting company. It never happened.

b) That there will be a JV will happen shortly regarding the Curamona Uranium "Province". It never happened.

c) That the granting of 4 exploration areas in Curamona that were to be funded by a third party "shortly"? Never happened.

d) They stated they had planned drill testing in Boraga "early in the year". Forget it - didn't happen.

http://sa.iguana2.com/cache/9aefbf829c3e557afd3839b3c15f0e3a/ASX-RAU-268430.pdf

e) 1. What happened to the Bolivian assay samples submitted as per the Luzon Progress Report in Feb 2007? Never reported upon.

f)What happened to Jennings Capital that was supposed to find the RAU/Luzon combination?
Disappeared and never heard of again.

3. What happened to the takeover offer of Luzon Minerals in Bolivia? Never happened and now is a legal battelfield.

4. What happened to RAU's intention to seek a listing on the TSX? You guessed it - never happened.

http://sa.iguana2.com/cache/825f54e0bd0070ab576768baa3dc3f85/ASX-RAU-276100.pdf

Pre non renouncables, despite numerous and varied placements, RAU were close to voluntary administration.

On the 09/08 I wrote:

"uite clearly, IMHO, the Oct 2005 soph placement and the corresponding SPP at 10c (at a 23% discount) will be replicated. Therefore IMO, if you like the story, stay out and buy in cheaper well under 3c within the next few months, although, they do have a history of driving the company into near fiscal collapse so maybe near the end of the year.

When you include the 10m placement at 10c plus the SPP at an 23% discount in Oct 2005 you can envisage hat is happening."

The share price dropped to 2c and I stated she was a speculative buy.

"Thx Zurich - I am not saying the SP will not continue to rise but be careful on news and remember, she has an enormous way to go before she resembles anything else but a HC d/trader stock. The techs looks good and she is a very high risk spec atm.

I only get a little nancy when some jibber on about unrealistic targets, consistently putting daytraders down, dismissing the majority of posts as "noise", while clearly mentioning PDN in his posts which IMHO subliminally suggest to dream eyes some type of miracle is about to happen.

The options ex price is a giveaway regarding long term SP growth given the size of dilution needed for any Mt Carbine story to eventuate which I rate as 50/1. Therefore, you have you au which has nominal value atm plus soil sampling, so be very careful. Their saving grace and the interest is the $3m and I would think quite a bit will be spent on drilling for gold again. The $3m is not alot compared to others which are so far more advance it is ridiculous to even compare in some ways.

PDM is ridiculously cheap now...I wonl' go on about them but there is QOL also. There is sig upside with QOL based on reserveincreases from strike and depth extension, plant expansions and high grade pipes that have been excluded from the resource population.

KIS has 6.8mt indicated/inferred, QOL has a def resource too but it is the grades. THR has 1.1mt I think. PDM has inidciated/inderred also. AZM & NTC are of interest too.

QOL currently has a diluted market cap of about $70m.

RAU has overshot - they are at a genesis stage - not even prelim. RAU is sitting at $20m and siamparrot has a 20c medium target with an ex oppie price of 2.5c?? i.e $100m market cap plus??

Anyway, that is my say. LOL..but wait...

Then you have KIS & THR. All of the projects have varying issues to overcome – some more than others. All numbers have been pre-projectfinancing. Some companies may use straight equity (QOL), others a combination of debt and equity (THR) andothers will use joint venture finance (KIS)....and RAU'soil sampling results and Mt Carbine's $15,000 and a few share option and he thinks it will be JORC compliant on old research reports whilst comparing tungsten to uranium? LOL..and when it come to scheelite...don'lt get me started. LOL

RAU has no production costs, no defineable resources in tungsten,no resource size, no process, no recovery rate, no mine payback, no mtu production, no op cash flow.

Hope you are eager for the soil sampling results and the very obvious value adding announcement which will include how this has determined drilling locations and the potential for a feasible mine through wolframite or moly or something - it has all been done before.

Nice to get up to date again. LOL"

Now look at your diluted market cap (including listed and unlisted options) and ask yourself why their was a ssoph placement at 7.5c and why the share price has gone up into the wild blue sky.

Despite the share price increase, I would never touch this. The fundamentals remain the same as they were at 1.3c but the seedy side of minnow politics and in house corproate dynamics are to me, very clear. No results have been declared as of yet.

I will state again, the last thing any holders need are results.

I won't discuss Bolivia and the constant changing in business plans and why their land was a potential gold deposit which has suddenly potential for massive amounts of tungsten, I mean uranium or was that titanium or antimony or lead or tin or uranium or copper or gold or....diamonds?

I even attempted to discuss my own research on Mt Carbine and their old grades and what they meant - but the vast majority just abused me who mostly just wanted to know whether the share price will go up "after lunch". I have or never wanted to be perceived as a "downramper" on RAU but that is the world I live in and love.

It frankly amazes me that so many care what I post upon and I am much younger than 52 Bionic Boy. LOL