G-Resources

[Admin]

I am a shareholder for the last 5 years and it's been a downward ride since day 1. The company has raised funds through rights issue and share placement at prices of 65 cents, 50 cents, 35 cents and rights issue of 1:5 at 18 cents as recently as 2 years ago.

Total funds raised almost USD 900 m over the years and spend usd 750m on the gold mine. Now that's it's cash flow positive and with a production cost at us$500, they want to dispose off to a fund at a ridiculous low price just above the cost of investment. Even at this low gold price at 1080, the company still makes about net profit of 70 to 80m usd per year. The buyer is also related party and sit on the board. The additional profit of $166m should the gold price average $1500 per oz is a stupid deal because if gold stays at that level, the company would have made usd 750m over 3 years. The idea of selling off a crown jewel and only gold mine for a gold mining company does not make any common sense.

After sale the company wish to diversify into finance and property related business who the board has no track of and no detail clarify of its new business. The board don't even want to reward a special dividend nor any share buyback. I am just so afraid that the funds will be invested in lots of low yielding and high risk assets and will be subjected to higher risk than the gold mine.

After all, we the shareholders are invested in a gold mine not a finance and property business. If we wanted to invest in finance and property business we could have done so in more reputable and better track record names. What make matters worse is that there are a few institutional funds who are shareholders and Some of these are gold or commodify related funds and they have to liquidate their holdings which will depress the price further.

I believe that The board is not acting in the best interest of the shareholders but more incline to further their own personal interests. It scares me that HKEX can let this go through without the proper examination. They don't even have a Independent financial advisor to comment on this deal. I hope you can publish my views in the newspapers and let the other shareholders know. I am sure most shareholders share my concerns.

Shareholder of G resources,
Thomas Tye

[Christina wong]

I agree with u and suffer the same fate. Wish we can remove the lousy board of directors especially Owen haggerty!

[Michael chan]

This is one of the biggest ripoff of the century. We should get them kick out and replace with real gold management. Keep the gold mine but kick out the board.

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