EZ

Hi! I agree with alot of what you say however Venezuela still refuses to accept GRZ and KRY. When I say refuse, they have made every effort to refuse the permits necessary for both companies to progress. Why then would they agree to work with an ABX, or a GG? Simply put, in my opinion, they have chosen a different route - to work with the Russians. Now that the Venezuelan-Russia BIT is in place this agreement will provide added security to any Russian investment in Venezuela.

Fung had mentioned USD 2 Billion as an amount that could be attached to the value of Las Cristinas. USD 2 Billion equates to let's say approx. USD 6 per share. Would Fung accept a lessor amount through a JV or buyout from a Russian entity if it avoided arbitration so as to bring about a quicker resolution? I think the answer would be yes! Prudence dictates an amicable solution because of the uncertainties attached to ICSID. We've been told that both sides want an amicable solution so assuming one can be reached then the cheapest way for Venezuela to accomplish this is to encourage a JV partner for KRY, to undertake to issue the permit and to grant an exemption to the Central bank gold sale rule.

I agree with you that LC is worth significantly more however at this stage of the game many shareholders including myself (and I hold 600 K shares) would jump at such an opportunity to sell sooner for a fair amount. In my mind fair represents USD 3.00 - 4.00 per share.

Should a JV partner be found, one acceptable to Venezuela, then I would suggest the payout of the bondholders and cash infusion needed to advance LC would come in the form of 'debt under-writing' by the JV partner.

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