A new beginningDecember 13, 2011Dear Shareholders,While my time with Royal Standard has been relatively brief, I have come to appreciate thepotential of our company and share with you the passion that makes this company and the peoplebehind it a great opportunity not only for the future but for the present. In the past year, severalimportant corporate and operational developments have taken place that, collectively, will helpadvance our company toward the production of gold. Through change and challenge here atRoyal Standard, we have discovered great opportunities for the future.Our Past, New Leadership and a New VisionRoyal Standard stands at a critical juncture in our development. Over the preceding 15 years ofour history, Royal Standard acquired some promising gold exploration projects throughoutNevada, but little was done to advance those projects to production. We believe formermanagement’s inefficient allocation of personnel and financial resources contributed to little realdevelopment. Royal Standard requires diligent stewardship to acquire the necessary expertiseand organization that has vaulted many other exploration companies into the ranks of producingcompanies. The apparent inability of former management to attract and retain high caliberpersonnel hampered Royal Standard’s development and put us at a distinct disadvantage to ourpeers in the mining industry. Today, we continue to actively seek-out and recruit individualswith experience in mining operations to assist us in the development of the Goldwedge mine.In November, I joined the board of directors of Royal Standard and found that my fellowindependent directors shared the view that the company represented a potentially significantopportunity if only its actual value could be unlocked for shareholders. It was clear to me and tothese directors that it was time for the company to accelerate our development and enhance ourtechnical and operational team. In December, with the departure of Royal Standard’s formerChief Executive Officer, I assumed the post of Interim President and CEO, to lead us in the nextphase of our development, while the board conducts an international search for a permanent,fully-qualified chief executive officer.Taking Royal Standard to this next level will also require sound financial management. As such,we were pleased to add Ike Makrimichalos to the team in August as our Chief Financial Officer.Ike brings with him 27 years of experience with Deloitte and Touche. In addition to acting as thefinancial guardian of the company, Ike is charged with keeping the board and seniormanagement well informed as to our overall financial condition.With new challenges and opportunities comes a need for an enhanced board of directors and weare pleased to add individuals to the board who bring a diversity of relevant experience to RoyalStandard. John Fitzgerald, currently Director of Mining at AuRico Gold, brings 20 years ofmining experience to our board, including positions with Rio Tinto and Barrick Gold; KenStrobbe, formerly of Barrick Gold Ltd., where his last position was as a Manager, UndergroundProjects, Capital Projects Group; and, Riyaz Lalani, currently COO of Kingsdale ShareholderServices, Canada’s largest and most active integrated shareholder services and corporategovernance advisory firm. We are also fortunate that incumbent directors James B. Clancy(Chair of the Audit Committee) and Paul G. Smith have agreed to stand for re-election asdirectors; their service in the past months has ensured that Royal Standard is firmly on track tounlock value for shareholders. Mr. Smith has also agreed to serve as Chairman of thereconstituted board and the board looks forward to his leadership going forward.Enhanced Corporate GovernanceA key focus of our board of directors will be an emphasis on sound corporate governancepractices that are appropriate for a firm of our size and maturity. The previous structure andmakeup of the board and the unwillingness of the former Chairman and CEO to actively informand consult with the board contributed to the slow development of our company. The presenceof the former Chairman and CEO’s daughter on the board and as a member of key boardcommittees, was inconsistent with accepted corporate governance best practices.The shareholders of Royal Standard deserve a board that is comprised of a majority ofindependent directors. Indeed, with the election of the proposed new directors, the entire boardand our key board committees will consist of independent members.Strengthened Financial BackingRoyal Standard has been fortunate to receive substantial debt financing from Waterton GlobalValue, L.P. enabling the company to jumpstart our development program and bring theGoldwedge mine to near term production status. Over and above their financial commitment,Waterton has also contributed substantial technical and operational resources to Royal Standardand we appreciate their considerable support.The Year AheadAs people of action, the current independent directors and I believe that Royal Standard’s topdevelopment priority is the completion of the development of the Goldwedge mine and to initiategold production in the first quarter of 2012. As such, we have initiated the following importantsteps to take us into the new year:An underground definition drilling program that will be expanded and accelerated tosupport near term production requirements.Underground rehabilitation, development of the ventilation raise and second egress andlevel development to prepare for near term production. This program will be expandedand accelerated with the intent of developing a significant ore stockpile and havingproduction stopes developed prior to the plant start-up.Refurbishing the existing, permitted, processing plant. This process is ramping up nowand is expected to move into testing and commissioning in Q1 2012.Our goal is to be producing gold in the first quarter of 2012. In addition to milling productionfrom the Goldwedge mine, we intend to utilize excess capacity at the Goldwedge facility to tollmill ores from third-party mining projects. We plan to evaluate fully our portfolio of explorationproperties and identify which of our projects have the best exploration and developmentpotential. With our projects properly prioritized, we can design exploration programs that havethe potential to yield significant results and identify new development opportunities for thecompany.It has been a year of change and challenge, but I believe the best is yet to come. The road aheadwill be traveled with greater success with our new team. I look forward to helping to deliver toyou the value you have so patiently waited for.Yours truly,Philip GrossInterim President and CEO