Company Value

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• Great Eastern Gold may or may not have announced an opening valuation.

• A valuation based on an in-production earnings forecast may or may not be reliable for a company not yet in production, with mortgages over its key resources, near-to-expiry leases that may or may not be renewed, and that may have unresolved ownership disputes (see Registered Mortgage, Resource Expiry and Ownership).

• Investors with hybrid securities such as convertible debentures may be affected by an unrealistic company valuation.

• A company's debt may also impact upon its value, depending on the amount of debt, type of debt, term of debt, and the company's ability to repay the debt.

• A convertible debenture may possibly remain a serviceable debt if the holder chooses not to convert it.

• An investor's due diligence may include an examination of the company's books and debt agreements. It is important to note that a company without production revenue may have trouble servicing its debts.

• The disclosure duties of a limited company include annual financial reports, financial statements, director's reports and auditor's reports. An investor's due diligence may involve requesting these reports.