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Microcap & Penny Stocks : Asia Sapphires Ltd.(APL) -- Ignore unavailable to you. Want to Upgrade?

To: Stuart Carmichael who wrote (6)	5/11/1999 5:13:00 PM
From: Coho	Read Replies (1) \| Respond to of 11

Stuart, what is your read on the latest news release? VANCOUVER, May 10 /CNW/ - At the Annual General Meeting of Asia Sapphires Limited (APL: VSE) held on the 30th April 1999 in Vientiane, the capital of Lao, PDR, all resolutions put forward by the management were passed. Chairman's Report. Year ended 31st December 1998. On July 21 1994 Gem Mining Lao PDR Co. Limited (GML) signed an agreement with the government of Lao People's Democratic Republic (Lao PDR) which allowed the company to explore and exploit sapphire in a 72 km(2) concession area in Bokeo Province, northwest Laos. During the period August 2, 1994 to December 31, 1996, the company performed surveys and feasibility studies at various sites in the area and discovered gem quality sapphire. In accordance with the agreement, the company then relinquished approximately 87.5% of the original concession area and commenced mining in 1997. The agreement allows the company to hold areas containing commercially viable sapphires for a period of 15 years with the right to extend for a further 10 years. During 1997 and for the first half of 1998 mine production gradually increased and was backed by increased cutting facilities situated in Vientiane the capital of Lao PDR. No significant sales were made during this period of establishment. On the 23rd June 1998 at a meeting of the shareholders of Prescott Resources Inc. (Prescott, a company listed on the Vancouver Stock Exchange), a reverse takeover was approved. The Board of Directors was replaced and the share capital of Prescott was expanded by the issue of a further 10,350,000 common shares to ultimately effect the acquisition of GML. During the 6 months to 31 December 1998, cutting increased to allow sales of $US600,000 during the period, mostly in sample batches, to large jewellery manufacturers who were testing the quality and our ability to deliver large quantities of sapphires over the long term. D.Swarovski & Company, one of the world's foremost gem processing companies based in Austria, and famous for their crystal products amongst others, visited our mine site in 1998, soon after our life commenced as a public company and expressed great interest in various aspects of our operations. This early visit culminated many months later in a forward sales agreement to supply vast quantities of preform sapphire pieces over a long-term period. To assist us meet their requirements, D.Swarovski & Co. agreed to advance $US 1.9 million to assist us to double production at the mine and quadruple cutting in Vientiane. Within a matter of weeks a new mining plant will be commissioned in an area approximately 4 km south of our existing plant, which will continue in full production processing daily over 2,000 m(3) of sapphire-bearing gravel wash. With the new plant in full production the company will have the capacity to mine and wash over 5,000 m(3) of sapphire-bearing gravel daily. In Vientiane a new factory (Number 3) has been commissioned to allow for a quadrupling of cutting and preform capacity to meet existing orders and to allow for supply to other major world gem processing companies. Our total employment has risen rapidly to 450, making the company one of the foremost mining companies in Lao PDR. Following negotiations among Provincial Government officials, GML and local rice farmers, land use compensation and restoration agreements were entered into. The rice farmers get two years compensation for loss of production, plus they receive back approximately 30% more paddy field, fully formed and terraced, with the top soil saved and replaced ready for immediate rice planting. The Vancouver Stock Exchange has not reviewed and does not accept responsibility for the adequacy of the content of the information contained herein. The statements made in this press release may contain certain forward-looking statements that involve a number of risks and uncertainties. Actual events or results may differ from the company's expectations. Asia Sapphires Limited 6-8 Sihom Road, Vientiane, Lao PDR Phone +856 21 21 3293