via SEDAR - September 10, 2010

September 10, 2010 closed a financing deal with Sprott for gold notes. This deal was also a prepaid loan. But it looks like it would open the door to an equity swap.

It seems like an awfully complex document for so little money.

Rick Rule did mention once that Sprott provided off-balance sheet financing. This might have been the agreement that set something like that off. I can see how the Waterton Prepaid Bridge Facility might follow such an arrangement.

I expect that should a mezzanine capital arrangement be announced, then we would find out months after the fact that this was also prepaid, either in full or the bulk through swapping cash for produciton held in escrow.

The documents also specifically mentions TD as a lender, but Sprott settled its equity swaps with TD Securities in 2012. In 2012, the Waterton agreement was signed.

So I suspect that monies garnered in off-balance sheet financing through equity swaps, where the share price declines, is likely to be applied to settling the outstanding Waterton Prepaid claim, where dore bars held in trust will serve as payment-in-kind.

At the end of this one specific material document, dated Sep. 10, 2010 - under Schedule 2 Claiims for the prepaid gold notes, you have all of GBN.V's dispositions, 4.5 pages, along with the NTS numbers that can be searched through SMDI:

http://www.sedar.com/DisplayCompanyDocuments.do?lang=EN&issuerNo=00007862

-F6