Hi Dazza

Of course, you may be right, but here is my side of it.

I tend to agree with your analysis that the stock has been kept down, but because of other reasons. I have asked the question to a person that should know, "does the sp in Canada of a stock have to remain in a specific range from the time a PP is announced, until its closed?" The answer was "no". I spent a few hours trying to find it in the regs, I found no mention of this being the case. I found a blog that also agrees more or less, I will put two paragraphs below and the link.

The price of the PP is usually lower than the share price. In Canada, the PP price can be no lower than 80% of the share price the previous day, at the time the private placement is started. After that, the stock may go up substantially, and the placement can still proceed, and thus, a financing may take place at much much lower than the current share price. But by the time the PP closes, perhaps a month later, the share price may be significantly higher, and this can create a very great opportunity for those who participate in the PPs, especially in a bull market in silver stocks. Even if the stock dips during the time a financing is taking place, sometimes the financing is "re-priced" to the lower market price, so it appears as if investors in PP's cannot lose.

Another shift is in the pricing. As stated previously, pricing on the date of the announcement may be no lower than 80% of the share price the previous day. But there is no rule saying the price must be low. In a bull market where the prices of silver stocks may rise 10-100% in a single day when new buying hits, it may well be prudent to price a PP at or above the current share price. After all, if a big investor was desperate to buy on the open market, they may well push the price up well above the current share price.

http://silverstockreport.com/privateplacements.htm

I do agree that the sp was miraculously kept above the $2 mark and most likely for the AMEX listing. As for the pressure to keep us down, I beleive there was probably a lot of selling by people who had warrants and options that needed to be exercised before expiry dates and a significant run up in the stock.And who knows, who ever got the PP may have had to sell some stock to exercise the warrants at the same time they are paying for their common shares. They were probably scrambling to get everything exercised they could before our results came out. Tax issues is probably playing a part in this too, hence the rush to exercise everything now.I beleive this sort of scenario happened with Aurelian. There was/is an awesome sp for big buyers to come in and take up large positions, but that didn,t seem to happen.Maybe because these big guys don,t beleive we may have something great OR because we are still little known about. But I beleive this is due to change shortly. The markets have also gotten very nervous in the last months and people will sell everything when this happens, this undoubtedly added to the selling pressure. Also if you had some small funds in our stock, they have to rebalance their positions quarterly/monthly and sometimes downsize risk.

I looked again at the Gluckenstein report last night from last June. I looked at the part where they gave a speculative buy rating and a $2.70 price target based on their info at the time. To summarize their info and how it has changed since then, they said Vilcoro had approx 1 million ounces of gold by their estimate at that time, with us owning 50%, we now own 100%.

They allowed 2.5 million ounces gold for the Tesoro, that will grow much larger as soon as we get results. We have aquired a couple other properties since then and have spent considerable monies on other properties since then, bringing them to a more advanced stage. Also, I am not sure if he calculated the NEW tesoro claims in there. Also his price used for price per ounce gold in the ground was extremely conservative and that has to have risen since then. We have come along way since his report and I would like to see his calculations today with the new info factored in after our first results.

Here,s a link to the old Gluckenstein report;

http://www.glucksteinsilverspoon.com/reports/9.pdf