Vlada,

Good Evening! It may be possible, as you suggest, that Venezuela believes it can bleed KRY dry in an effort to award Las Cristinas to another Company however I don't believe this to be the case for the following reasons:

(1) The EIS and final environmental studies/adjustments made in order to obtain the final permit were made basis KRY's plans in KRY's name. In order to void the MOC KRY would have to default on their agreement with the CVG. This has not happened. A failure to provide the permit to CVG for KRY's application nullifies that application. Even if the CVG was to walk away from the MOC then the next applicant would have to start the process from scratch again. The question then becomes, which publically traded gold mining co. will be prepared to make an investment in Venezuela and risk capital after KRY's/GRZ's experience? Would Rusoro be able to launch such an exercise? Would Rusoro be able to raise the cash and spend several years in obtaining the same permit - even if Venezuela speeds-up the process? I think if your answer to these questions is negative then you have your answer!

(2) GRZ is essentially in the same situation as KRY - no permit and no communication from Venezuela. KRY is not in a unique position. GRZ has the cash to ride-out Venezuela so unless Venezuela plans to send 2 sound legal cases to ICSID it is running out of options on how to resolve their predicament.

Resolution will come. It is just a question as to what form it takes. Should Venezuela decide to refuse to participate in the Canada/Venezuela Treaty process then we and GRZ have their answer and Venezuela will be left with 2 additional ICSID cases.

Cheers

Teutracker