CariGold Forum - VIRGIN GOLD MINE CORPORATION

New CEO of VGMC – Kenneth Elinger

August 8th, 2011
Dear Board of Directors, Fellow Colleagues, Committee Members, Shareholders and Partners of Virgin Gold Mining Corporation:

Today is the most humble day of my life as I take my position as the new President and Chief Executive Officer (CEO) of Virgin Gold Mining Corporation (VGMC). I will also continue to hold the position of Vice President of Finance for the time being. I would especially like to thank our former CEO, Mr. Hansen, and the Board of Directors for having such high a level of confidence and trust in me. I would like to thank all shareholders for this opportunity and I ask for your patience and support to allow me to bring revolutionary changes to this corporation.

I joined VGMC in 2006 and have been involved in the making of every important decision of this corporation since then. When VGMC launched Convertible Preferred Stocks (CPS) in January 2010, there were doubts in many people’s minds whether it would be a great leap forward or a failure, but I always assured every doubter that it was the perfect step forward. I put forward almost all my savings of nearly half a million dollars for 600,000 CPS shares (offered at a discounted price of 0.80 USD per share in January 2010) on that day itself. Such is my confidence in this company that today I own nearly 2 million VGCPS.

Almost two years down the road, I can proudly share with you that I have never seen anything so good, other than maybe Google or Facebook. In the gold mining industry, I think our dividend payments, our trading platform and our way of raising capital is second to none. Mind you, VGMC is still virtually unknown. Many potential shareholders take offence to the fact that VGMC is largely an unknown corporation, “unheard of” previously.

I am telling you that if VGMC were as well-known as Barrick Gold, Goldcorp and AngloGold Ashanti, we would have to be a public listed company at least. You and I (most of our permanent staff own VGMC shares) would not have enjoyed such good dividend payouts these past few years. If it were just my personal decision, I would rather VGMC to remain low profile, yielding high dividends for shareholders every year and staying private. Facebook, for instance, chose not to go public even when they could have done so yesterday. If you search online, you will see how many 10's and 100's of times, all those Facebook shareholders make from their investment in this past 2-3 years. This is probably a once in a lifetime miracle, but at VGMC we are also aiming towards that direction. We hope that we are able to give our shareholders the profit of 10 or 20 times through dividend payouts and capital appreciation (increase in your CPS value) over a time frame of 3-5 years.

Let me highlight a few important goals that my team and I aim to achieve within the remaining period of 2011, so that as a shareholder you will feel more involved:

1. Increase shareholders’ account security. We hope to be able to roll out some kind of security device for shareholders to use when performing critical transactions. There have been many cases in which our shareholders’ account security has been breached, but let me make it clear that it was absolutely not VGMC’s fault. My objective is to help our shareholders to have a more secure and safer transaction environment.

2. Simplified procedures. You may have noticed that the shareholder’s application form has been simplified this month, but this does not affect the creditability of this business. I hope to be able to simplify many more procedures at every stage of our transactions so that both this corporation and its shareholders are able to save more resources (time and money).

3. Understanding and Channeling of Information. We are all living in the information age using the most modern and sophisticated system solutions available on the market. Unfortunately, humans do not work like robots. We have shareholders in over 100 countries using all 26 languages of our website, thinking and behaving according to local customs and culture. We have over 600 employees now coming from different backgrounds and based in different regions. There have been many instances whereby many of our shareholders do not fully understand the kind of information we try to communicate to them. My immediate task is to make sure that the correct information is being channeled to the right people in the quickest time possible.

4. Payment Processing – To evaluate, analyze and to find solutions on how we are able to process payments more efficiently. Shareholders in Brunei, India and Sri Lanka request that VGMC opens a corporate account in their country as they claimed to have TT restrictions in their countries. Turkish and Egyptian shareholders are complaining of unavailability of local agent facilities in their countries. Kazakhstani shareholders cannot receive their dividend because our bank refused to send payments to private accounts there. Indian shareholders cannot receive their International TT because their local bank (or the Reserve Bank of India) needs complete information on how their citizen is able to receive a foreign company’s dividend. Russian and Argentinian shareholders complained that credit withdrawal reached their accounts after more than one week. Saudi Arabian shareholders complained that the exchange rate for local payments is 0.5% to 1%, lower than the interbank rate.

Due to the fact that VGMC is very globalized, we face many challenges with regards to processing incoming and outgoing payments. We are using 3rd party payment processors and local agents in order not to subject everyone (especially our shareholders) to tough financial regulation procedures. I want to prioritize some important issues to make this whole process more efficient and available to everyone. But I want you to understand that if your payment is $50 lesser, it does NOT go to VGMC; there are always external costs involved in doing any business and transactions. If your USD TT is delayed or withheld due to the interference of OFAC of the US Department of the Treasury, it is neither your fault nor our fault. My priority is to find a better solution all the time.

I want to take this opportunity to urge all shareholders to maximize the Internal Credit transfer facility. It is not appropriate for me to be so blunt about the benefits of internal credit transfer. I am telling you that all your transactions are private and confidential as VGMC, based in an offshore jurisdiction, pays a lot of priority to privacy policies. This facility is created to facilitate and create convenience to shareholders to do any transactions at your own conversion rate, at your own convenient time and place.

There is no need to “test” the financial muscle of the company by requesting a series of credit withdrawals. This is not a “money-game” @ Ponzi scheme that appears on the internet every day. “Testing” wastes everyone’s resources. There have been cases of delay due to unforeseen and unavoidable circumstances but I can assure everyone that shareholders have always received their credit withdrawal in their bank account. If there is even one shareholder who can come out with evidence that VGMC is not paying their dividends, let me be the first one to put my head on the chopping block.

5. VGMC Premier. The rich get richer, the poor get poorer. Sad but true. To raise 10 million dollars from 100 people with $100,000 each is much easier than from 10,000 people with $1,000 each. It goes against cost saving, capital and service efficiency to hire 100 staff to handle 10,000 people (ratio of 100:1) but it makes perfect sense to hire only 10 staff to handle 100 people (ratio of 10:1) when we are referring to the same economy of scale. Whether you like it or not, VGMC is moving up the chain in this direction. I hope VGMC Premier Dubai will be able to offer the best available service to our premier shareholders. This office will only start operation in the latter part of August 2011 and I want to see this office providing a very privileged service to all premier shareholders by the end of this year. We are considering making a special exception for premier shareholder status by lowering the requirement from 100,000 to 50,000 CPS from now until December 31st 2011.

6. Appreciation Dinner. We look forward to holding a few appreciation dinners regionally towards the end of the year to appreciate the contributions of some shareholders who have been very active and involved in spreading the good news and promoting the image of this corporation.

With these latest updates, I hope everyone will have a bigger picture of what is going on in VGMC today. The time has come for me to lead VGMC to the next level. The next level is equal to higher capital gain (higher CPS price) – lower dividend relatively, higher efficiency, faster growth and more educated high-net-worth shareholders.

I am a very blunt and sincere person by nature. Please do not be offended by my straightforwardness. Everyone is welcome to email me at elinger@vgmail.com with comments and suggestions to improve this corporation. Please do not misuse this private channel that I give to you all by emailing me your Credit Top Up, Withdrawal and other common and nonsense issues. Always use the appropriate channel and you will get the fastest response. Please do not be disheartened if I do not reply to your email as my job is to run this corporation, not to entertain all shareholders.

Thank you for your time and support. Your love and support for your own company will be the main determining factor on how fast this corporation is able to level up.

Kenneth Elinger
President and CEO of Virgin Gold Mining Corporation