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Gold/Mining/Energy : Silver Bull Resources, Inc.

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To: WalterWhite who wrote (1310)	11/13/2007 10:18:47 AM
From: Mr. Aloha	Read Replies (1) of 5637

As far as poor communication to shareholders, I think that stems from Merlin's fear of setting expectations ahead of the feasibility study as Yukon Zinc did last year (which ended up crushing shareholders), and also reflects the more restrictive rules of the SEC vs. Canada. Many mining investors are used to loose Canadian regulations and overpromotional management, and MMG is a very sharp contrast to that. I think Merlin believes his conservative approach will end up serving long-term shareholders best. I don't agree with the policy of not releasing individual drill results, but apparently that's how the bigger companies do it (I don't recall seeing any individual drill results from any majors). On the silver drilling, they have their own drills and their own drillers on a property with seemingly endless potential. Unlike other juniors that have to contract drillers for a set period of time and number of meters, MMG can continue to drill for many years without end (at a much lower cost using local labor instead of contractors). As a shareholder, I'd much rather see them continue to drill than choose to stop after a certain number of holes. I'd find it much more worrying if they said they would complete the drilling at x meters. As for being "taken out," given the similarity to Skorpion and GTI's involvement, he has to deal with the very real possibility that Anglo or someone else will try to buy them out after the feasibility study. One definitive action this prompted was the adoption of the poison pill (shareholder rights plan), which gives the board and shareholders some control. If being "taken out" never entered his mind, shareholders could be more easily robbed by a cheap takeover bid. Also, proving up as much silver as possible before any takeover bids maximizes shareholder value whether they get "taken out" or not.

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