Red Rock Resources - Re: RRR Stream Log - Dear Shareholders and Colleagues, A...

Dear Shareholders and Colleagues, A little after 11.11 a.m. this morning, when I read an email received at that time, we became aware of the announcement put out by Kansai Mining Corporation in Canada. So we knew only a little before you did. This seems an excellent transaction, and we hope it succeeds. We knew of the possibility, and had meetings and discussions a few months ago with Kansai and the acquirer, even in relation to the specific terms, and we are of course in touch with Kansai on a near-daily basis, but we were not aware that matters between Kansai and the buyer had progressed so well and so far. We suspected that the deal might not proceed. We were wrong. We understand that the principal interest of the acquirer group is in the Venezuelan diamonds, and in Bruce Walsham’s skills as a project finder. They have known each other for some time. For us the attraction of this deal is that (a) we retain our JV and earn-in with Kansai unaffected, (b) we dispose of a peripheral asset for a large short-term gain, (c) we get funds to finance our exploration and development, and (d) we gain a financially strong new partner. I am not sure this is a tribute to our skill, unless in investing in Kansai at a very low entry point. It is not, as some have suggested, a tribute to our cunning that we are bringing out this news at short notice on a Friday afternoon. No! Sometimes one just gets lucky. Andrew Bell Red Rock Resources