Dear Mr. XXXXXX,

Thank you for your email regarding ECU Silver Mining Inc. (“ECU”).

UMIR does not contain a provision which requires a short position to be closed out prior to a stock ceasing to trade. In the normal course, a short position would continue to be liable for the position. In the case of a reorganization, such as the one referenced in your email, the short position would normally be “charged” in accordance with the corporate action (i.e. would end up being short the equivalent post reorganization position). This is very much a clearing and settlement function and you may be able to find further information respecting the actual mechanics by contacting a representative of your Dealer.

Unless I'm mistaken, this legalese indicates that an official short position can carry over to the combined firm.

This is the most distressing piece of news I have read in a long time. And so it continues...

lb