Advanced Explorations Inc. ADEXF

RE:Roche Bay plc's letter to stakeholders

[Shlinker_]

Thanks for that peice of information GoldenGreen. I like the fact RBPLC is willing to wait this out as well. 

The Roche Bay Project is a Valuable Real Option

We also believe that the Roche Bay/AEI JV is worth more to everyone alive than dead, for the following reasons:

• Roche Bay and the related Tuktu deposits (some 60 km north of Roche Bay) represent a solid “real option” as a hedge against both the iron ore oligopoly and monetary uncertainty. This real option does not require much tightening by the oligopoly to be worth progressing. It seems unlikely that buyers of iron ore, in China or elsewhere, are naive enough to assume that the short-term market movements are going to lead to long-term repricing of a major globally-traded commodity.

• The land title is secure, the risk of holding is low, and the cost to maintain the asset is very reasonable. We do not expect any Canadian government to put in a “use it or lose it” mineral policy.

• There is significant upside in the district and multiple undrilled mineralized zones, and this could be a region that could produce a material amount of ore for China.

• The total debt not owed to Roche Bay and to the Chinese debenture-holders is not material to the value of the option if the investors are confident that the option is secure.

We believe that AEI’s largest creditors and largest investors need to lead a financial revitalization and restructuring that both preserves value and creates more value for all parties, and we are willing and ready to participate fully to achieve those objectives.