I've been looking at old PR and media reports from GRZ anf KRY and have come to the conclusion that IMHO our problem is GRZ. VZ doesn't want to issue us a permit until GRZ files for arbitration.

Compare the differences between what has happened to both companies since the denial. Both KRY and GRZ attended the meeting with Garcia to discuss changes that needed to be made to the projects before approval would be given for the permit.

Kry has made the required changes to the project and has had them approved by MinAmb with an official letter. GRZ hasn't announced they have made any changes or even had a meeting with MinAmb or SANZ to discuss the requirements from the June 18th 2008 meeting.

GRZ reported they got their first offer from Rusoro in a Aug. 27th PR. Since that time the only news to come out of GRZ has been about about their fight with Rusoro and the sale of some equipment.

It was on April 21st 2009 that GRZ finally gave notice to VZ that they had a dispute with VZ. This is what KRY did on November 28th last year.

Since that time the only news from GRZ has been about VZ not following their own law and Doug saying that with the new gold sale rules it is impossible to make money in VZ. Mibam has request GRZ give them all of the technical information for the Brias project.

In all that time KRY has completed their social projects, received a letter from CVG stating they continue to be in good standing in VZ.

I'm left with the impression that VZ wants to get rid of GRZ not KRY. They have used Rusoro and now the new gold law to try and force GRZ out and KRY knows it. VZ is doing everything possible to get GRZ to go the legal route. Doug has made it know that they are done with VZ and plan to take the rest of their money and look for new opportunities.

I believe that Mibam asking for the technical information was another push of GRZ. GRZ doesn't see the benefit in transferring the information. VZ is counting on GRZ not giving them the data and using this as a breach to give GRZ the boot.

I have to believe that Fung and KRY know what is going on. This is why they have said nothing negative about the new gold sale law. This is also why they haven't filed for arbitration. They know the end game and they don't need arbitration.

I can't prove any of this other than to say look at the PR from both companies and see how things have changed and progressed.

JJ