RE:FOCUS- LAC DORE APELLA RESOURCES Tom-- the Vanadium/steel space is not simple to understand. Bakker, when employed by Pacificore, was never involved in a managerial role or in any discussions with any key individuals within the industry. Even in recent years, which we have followed closely, Bakker/Pearce/Hewlett have never been able to break away from the bit players of the V space. At Pacificore/Apella all of the serious end of the business was handled out of my office by myself, Bob Stewart P. Geo. Christian Derosier and Ian Casidy (our in house GeoTech). When Bob and I noted the claim ownership error which allowed the Lac Dore to come open, we secretly set up the strategic planning and staking. Bakker and A. O'Brien were informed of the rough plans of the strategy just days before the staking. I flew them to Lac Dore to man 2 of our camera positions so we could record the anticipated staking rush of August 2007. Why Bob and I targeted the Lac Dore deposit was not primarily about VRB batteries, it was because the Lac Dore at the time had a very key combination of iron with a Vanadium sweetener which was being used to make steel in the furnaces commonly used throughout the world, especially China. We were well aware at the time of the VR battery business but it was not our primary target. So we quickly added a couple of other key specialists to our team, Dr. Christian Derosier and Dr. Mehmet Tanner, a world renowned Vanadium expert. Dr. Tanner introduced me to professor Maria Skyllas Kazacos and her husband Michael. Maria agreed to join us and provide us with knowledge of the VRB space and technology with the understanding that we would not try to enter the Battery business at that time which would ultimately cause her conflicts. As you probably know, I had to spend 4 years in a court challenge with the Quebec government mining arm over title to the claims. The odds were astronomical against us. But we prevailed. We finally got the claims in our possession very late in 2011. Fortunately we had acquired the Iron T shortly after staking Lac Dore and spent the period between 2007 and 2011 developing that project until we won the Lac Dore. In 2011 we entered serious discussions with the individual who built the world's largest Vanadium company and his employer Pangang Group of China. I made the mistake of asking Bakker to sit in our discussions at our Vancouver office. This gentleman was NOT impressed with Mr. Bakker, as he stated in an email to me. These discussions were going on right up to the day of the Dissident Penta-jacking of April 1,2013. Also at that very same time we were in discussions and meetings in Vancouver with a second group from China that wanted to combine their operating V mine in China and put $15 million dollars cash into our Power Vanadium subsidiary. In addition to that, myself, Dr. Derosier and several of our other Directors and our corporate lawyer were in day to day closing discussions with a mining group from Mexico owned and operated by Carlos Slim, the richest man in the world at that time. These discussions were extraordinarily confidential, however Bakker broke into my confidential communications and directly communicated with the negotiating party and his contacts causing havoc- the closing meeting that was set up in Vancouver legal offices to conclude the acquisition of all of our Vanadium Iron assets into one company and all of our Gold Copper assets into a second company was set to happen within days of the dissidents/PENTA-jackers attack and Bakker read that in the communications. The lawyers and execs representing this conglomerate went ballistic. They threatened to seek our their own private investigation team to track down Bakker.... but within a very short period this whole closing was terminated and it was clear why. These kinds of conglomerates cannot and will not risk the exposure and embarrassment of getting involved with assets under attack by the likes of the Bakker/Pearce/Hewlett PENTA-jackers. Following the implosion of the Mexican transactions and the ensuing 4 months of outlandish hostility that was obviously witnessed by the Vanadium people in China, the gentleman with Pangang decided to never accept another communication from Bakker or his peers. The destruction of the relationship and potential deal with the Carlos Slim group by Bakker royally screwed you shareholders and you didn't even know it.
Tom I will come back and provide further clarification for you as to why Bakker/Pearce/Hewlett 's plan to focus on the Vanadium Tech side of the industry was a disastrous mistake and how their complete lack of understanding of the V business cost all of you shareholders millions of dollars and years of time.