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Gold/Mining/Energy : SOUTHERNERA (t.SUF) -- Ignore unavailable to you. Want to Upgrade?

To: PHILLIP FLOTOW who wrote (6544)	5/21/2001 6:08:03 PM
From: Goalie	Respond to of 7235

Hello Philip: Here's a brief story on the report: Uganda, Rwanda Officers Cited in DR Congo Looting New Vision (Kampala) March 28, 2001 Emmy Allio Kampala The United Nations (UN) panel probing illegal exploitation of the Congo's natural resources has named Ugandan and Rwandan military officers among groups looting in the DR Congo. The report, to be tabled to the UN security Council this week, was published on March 23 by the Paris-based Le Monde newspaper. It named USA, German, Belgium and Kazakhstan as leading buyers of the illegally exploited resources. The report said Uganda as a country has no policy to loot Congo but implicated several UPDF officers, former presidential advisor on defence and security affairs, Maj. Gen. Salim Saleh, as well as political heavyweights. It said in Kampala, there were evident signs of wealth Ugandan officers had acquired from Congo, adding that the UPDF considered their period in Congo as a compensation for their part in the war. The report said a UPDF officer in Arua, Col. F. Mugenyi, who controls parts of northeastern Congo, ordered the population to mine gold at Kilomoto. It said after three months of savage mining, industrial mining by the Ugandan officers goes on. It said on September 9, 1999, a huge rock of pure gold fell off at Gorumbwa in Watsa. It said in the confusion, Mugenyi grabbed 15kg of pure gold worth millions of shillings from government reserves in Watsa. Army spokesman Lt. Col. Phinehas Katirima yesterday said the Government was preparing a comprehensive reply to the UN report. He said, "Those allegations are quite big and they need a comprehensive government reply." The report said Rwanda has a well structured system of exploitation established in 1996 when Rwanda catapulted the late DRC leader, Laurent Kabila, to power. It said Rwanda uses Congo's resources to finance its military operations there. The report said about 1,000 to 3,000 prisoners of war were used by Rwandan officers to mine Kasasa in the North Kivu province until the mines were exhausted. Last week, Rwandan presidential press secretary Nicholas Shalita denied the claims. The report implicated a Lebanese company, Victoria Society which, it said, belonged to people with close links to President Yoweri Museveni. It also attacked Zimbabwe, Angola and Namibia. Copyright © 2001 New Vision. Distributed by AllAfrica Global Media (allAfrica.com).

To: PHILLIP FLOTOW who wrote (6544)	5/23/2001 5:44:57 PM
From: VAUGHN	Read Replies (3) \| Respond to of 7235

Hello Phillip I really don't have any, other than to suggest that you note the names and countries referenced as some of the players in this corruption investigation. That having been said, I doubt if some of the more sophisticated (intelligent) players will do anything so stupid as to leave an obvious trail. My general point in posting the report Phillip was to caution the thread. Perhaps we should not get too excited about any of our central African assets, regardless of their potential or whether they are in a "report" named country or not. I believe the report's real significance is in the scope of the smuggling, theft and corruption. These commodities and players are moving and acting through far-reaching and pervasive networks and I would not presume that any continental country is not or will not be involved. I certainly do not believe the market will make any such distinction. Europe might be prepared to assign value to third world assets, but I do not believe North American and especially Canadian shareholders are quite so risk blind. As regards the discussion of upside. I believe SUF has the potential and will probably appreciate after PGM production starts in August, but I do not share the enthusiasm of some for a major move over the near term. Posted upbeat AR quotes aside, the company also indicates that almost all revenues from Messina will go toward debt retirement over the next two to three years. A year into that time span, deep pockets will probably take a position in anticipation of debt elimination, however, baring another PGM spike or a major Australian (first world) discovery, I don't see the general market piling on board until after the horizon can be seen. In that respect, so long as payback is as rapid as anticipated, I would prefer SUF to develop and expand Messina through borrowing rather than by giving away a % such as was done with Camafuca, or by diluting our equity with an underwriting, such as is requested in the AR Information Circular. In that respect, I hope shareholders will vote against management's request to issue dilutive financings through their AGM vote or mailed ballots. Further, until management has increased our share value, I do not support and would urge shareholders to reject management's requested featherbedding. If management wish to take a salary cut in lieu of share options then I would support that, but not to have their cake and eat it too. Management should reward shareholders for our investment and patience, then shareholders will support rewarding management's performance. But earn it! Finally, I note that management is not asking our permission to give away part of Messina in return for third party financing/development! I hope shareholders will send a clear message of concern about this issue before and at the AGM calling for a vote from shareholders on the matter. I note on pg. 15 of our Information Circular that management is asking for our comments. In that respect, I urge every shareholder to express his or her opinions and/or concerns accordingly. inbox@southernera.com or fax 416-359-9141 Regards Vaughn