Resource Capital Gold Corp GDPEF

RE:RE:Some thoughts and input

[lmcbain]

Hey Specky,

• the $.25 offer would never have been announced to shareholders until / unless a formal written offer from Anaconda was tabled and with the number of shares that were represented by the Insiders at the time, if they weren't on board Anaconda would be unlikely to formalize the offer. I call it greed, based on what I have been told, because at that time they still thought they were going to be moving into full production and that the $.25 offer was undervaluing the assets that were in place.
  • The reality is that they skipped the step of drilling and geophysical analysis and subsequently misread the structure when trying to go straight to mining - that cost them (and us) a bundle.
• because they felt they were going to have solid cash flow from mining of the Dufferin, they gambled on using the cash for additional property, they also probably got the property cheaper, because the Dufferin wasn't yet in full production. The problem is they left themselves cash poor when things didn't work out and the market was not being overly friendly either.
• the problem with taking the scenario you describe to the regulators with the conclusion you have drawn and expecting them to act on it, is that the publicly available information doesn't support the conclusion when viewed objectively - it looks like a conspiracy theory. As we all know, some conspiracy theories are reality, but they can be very difficult to prove and the regulators aren't likely ot take that on.

There are without question some strange happenings:

• George fired with no plan in place for a successor
• George fired because, theoritically he couldn't get the market going, and yet the company did nothing to correct that and actually actively rejected discussions to correct it.
• The leasing of equipment that by at least some accounts was substandard when it arrived, yet the company funded the repair, it was not born by the supplier - this should not be the case. General maintenance should be born by RCG, but bringing it up to snuff when it arrives in poor condition should not be acceptable - assuming that assessment is indeed accurate - at present it is hearsay.
• when the company was already in poor financial health $2m was offered as a starting point for a financing by a small group of existing shareholders and that offer was summarily ignored - acted upon in no way, no formal response of any sort.

Hoping this helps.

Salut,
Leigh McBain