I can't see how we, as shareholders, can lose in this situation. The stock is not well understood by many which is why if offers such a potential windfall pay off.

Just to summarize:

Fung has known for many years that the Venezuelans were not going to issue a permit for Las Cristinas. By getting the Chinese involved by waving such an incredible 2/3 rd's deal at them he got them locked in, locked in by virtue of the primary binding agreement. Venezuela tried as best they could to block, frustrate and deny both Gold Reserve Inc and Crystallex for many years because the original royalty/concession deals that they originally entered into way back when are no longer viable deals. Hugo also wanted to take ownership of the mineral rights. I can't say I blame him given the year over year gold price increases. So, Hugo is stuck with two very strong arbitration cases. He can't appear to have allowed Crystallex to have participated in any JV deal because that certainly wouldn't look good at arbitration in the eyes of Gold Reserve Inc so he had no choice, when Crystallex wouldn't leave but to revoke the MOC, albeit under very dubious reasons.

So, what we know is the following. My top 10:

(1) CREC/CRRC want access to the gold. If they want to participate in LC they would want to participate in LB.

(2) Vz wants both mine sites to be operated as one mine or at least under the control of the same entity.

(3) We know that 30 - 40 million oz's exist at both sites - the largest untapped mine site in the world.

(4) We know that China has the financial backing to develop the gold.

(5) We know that China is acceptable to Vz.

(6) We know that both KRY and GRZ want to secure a settlement and avoid any participation in Vz mining

(7) We know that Bob and the Chinese are tight, that China continues discussions with Bob and the Chinese continue discussions with Vz

(8) We know that Hugo can not be seen politically offering Vz funds to GRZ or KRY to buy them out (he doesn't have the cash anyway)

(9) We know that any potential buyouts would have to come from China

(10) Unless China buys out both companies, then Vz will be stuck with a multi-billion arbitration payout sometime down the road

Bob has orchestrated the Chinese deal. He has coached them and moved them into a very lucrative position with the Venezuelans.

The Chinese appear to be working 'as if' the primary binding agreement exists.

My take is that a buyout price has been offered to Doug B and he has declined. Doug B will need to be onboard on any buyout price before any buyout deal can be structured with KRY.

I think it is just a question of time before both companies are bought out, and the Chinese get access to the mine plans, equipment, infrastructure to commence their JV with Vz. Hugo gets his JV with an acceptable political partner, is not seen to have paid off the gringos and life continues.

In the meantime we have several time constraints, not least of which is the Macquarie expiring warrants.

It wouldn't surprise me to see something develop over the next 30 days.

We either obtain an acceptable buyout in the $ 2 - $ 3 area or we see arbitration through. I also believe Bob has backing on financing through arbitration and dealing with the noteholders.

At 15 cents I just can't understand where the risk exists.