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Gold/Mining/Energy : Mongolia Gold Resources -- Ignore unavailable to you. Want to Upgrade?

To: Glen Gordon who wrote (1813)	2/4/1998 6:53:00 PM
From: AreWeThereYet	Respond to of 4066

Glen, >> May 13 1998 & May 13 1999 Original Wt exercise price: $1.16 & $1.41 New Wt exercise price: $0.40 & $0.46 << Thanks for the info. Did you get the info from VSE directly, I can't find the press release from MGR... I don't mind a slight reduction in warrants price but I am shocked by the percentage of reduction (-65%)! I hope Dave can give us some good explanation. aC

To: Glen Gordon who wrote (1813)	2/4/1998 8:23:00 PM
From: Phil Jones	Read Replies (1) \| Respond to of 4066

Dr. Dave: Why did these warrants get revalued? This doesn't seem very fair to regular shareholders who have to take their chances on market movements in the share price. The revaluation was a very large one, and to the obvious benefit of these warrant holders. Just like putting money in their pockets. How do you justify it? If you have a rationale reason for this being done, please let us know. Otherwise, I'll just take the loss and get out of MGR.

To: Glen Gordon who wrote (1813)	2/6/1998 8:57:00 AM
From: Bill Jackson	Respond to of 4066

Glen, The function of warrants is to get money into the company by setting some future date/price at which one hopes the warrant buyer will exercise the warrants, at some profit to him. If he buys shares in the market the company gets no money at all from the exercise and also has transfer agency costs. The intital offering of PP shares are usually at the market(and now way under water) with the warrants as a sweetener to get their cash. Since the warrants are out there and the approval process to reprice is easier that getting new ones it makes sense to reprice them to reflect market reality in the hopes that they might get exercised and the company get the funds for exploration. One hopes gold will return in the spring/summer and we will all have higher priced shares and be happier. In the meantime we can buy shares in a producer for under 20 cents, and they could easily head back to $1 or so if gold returns to $350 or so. There is an expression called 'bottom feeding', by buyers who look for cyclic drops in prices and load up. MGR and many other juniors are in that area. Thos with strong JV partners like Barrick are better off than naked exploration players, and producers like MGR, RYO eyc are the best as they will have a higher gain multiple if and when gold returns. If gold goes to $100 we will all get hung out to dry. Bill