Oiramoric, I disagree. Perhaps my math is wrong but I will lay out my thoughts on how this is much better for us.

Here is what the Venezuela Central Bank did in May of 2009. The Finance Ministry said today that 70 percent of gold produced in Venezuela must be sold domestically, and 60 percent must be offered first to the central bank, in a resolution published in the Official Gazette. The remaining 30 percent can be exported. Previously, 20 percent had to be offered to the Central Bank.

Since May, 100 ounces of gold sold by a company in VZ would have resulted in 70 ounces being sold domestically at the exchange rate of 2.15 Bolivars to 1 US dollar and 30 ounces being allowed sold outside of VZ at normal exchange rates. The black market exchange rate for Bolivars to US dollars is about 6 to 1 instead of 2.15 to one.

When I did my calculations for my post I used the current price of $1155 an ounce. $1155 US dollars would have been worth 2483 Bolivars at 2.15 instead of 6930 Bolivars at the black market rate of 6. That is approximately 35% of the real value of the gold or $404 an ounce in US dollars.

We now have 70 ounces at $404 and 30 ounces at $1155 before the rate change. This comes to $28280 + $34650 = $62930 for the 100 ounces or $629 an ounce.

With the new exchange rate of 4.30 for gold the 70 ounces sold domestically are now worth $56560 and the 30 ounces remains the same at $34650. This adds up to $91210 for the 100 ounces or $912 an ounce. This is a difference of $283 an ounce more for gold companies.

I don't know if it will boost our share price or not today but I do know that under current VZ rules the value of the gold covered by our MOC just went up $283 an ounce. Multiply that by 20-30 million ounces. I can only see this as a positive.

I will also speculate that Aggapov and Fung both knew that a change was coming. Aggapov stock piled RML's gold and is now willing to sell it.

We have been wondering why Fung hasn't made a deal or announced a deal for Kry. RF couldn't come out and say we are waiting for VZ to change their exchange rate. This would look like their were changing the rate because of outside pressure. RF also wouldn't sign a deal for any JV or buyout when the value of our gold was $629 an ounce if he knew it would be worth $912 an ounce after the announcement. Even if RF didn't know the exact new exchange rate it would still be better to wait for the increase.

This is a stretch but it might even be possible that the sealed court documents may have included the up coming raise in exchange rate.

If I'm off base with my calculations I would appreciate it if some one would show me where I went wrong.

JJ