Crown Point Responds to Misleading Comments from Dissident - Seite 3

The Official Exchange Rate − The Strategic Financing is based on Argentina's official exchange rate which is the only exchange rate available to Crown Point. When Crown Point transfers funds to its Argentine subsidiaries in the ordinary course of business, it does so at the same official exchange rate as is used for the Strategic Financing.

Eight Months of Effort − Contrary to LAIG's assertions, the Strategic Financing is not an attempt by Crown Point to entrench management and the Board in the face of LAIG's meeting requisition. As noted above, Crown Point has been in discussions and negotiations with the investors in the Strategic Financing since March and was in the process of finalizing a binding agreement when LAIG requisitioned a shareholder meeting.

Funding Near-term Commitments − Contrary to LAIG's assertions, the structure of the Strategic Financing is not designed to circumvent regulatory requirements, but rather to ensure that Crown Point is able to obtain access to the capital that it needs to fund its near term commitments for its ongoing capital program at TDF.

Strategic Investors − The two strategic Argentinian investors will add significant value to Crown Point. They have strong reputations in Argentina based on demonstrated successful track records in oil and gas, finance, and other industry sectors. Crown Point expects that they will bring access to new opportunities and financial resources and will help to accelerate the Company's growth plans.

Crown Point Acted Appropriately in Reassessing El Valle

LAIG's criticism of Crown Point's strategic decisions in Argentina, such as the sale by Crown Point of the El Valle block in Argentina, are unreasonable. Contrary to LAIG's assertions, Crown Point acted appropriately in reassessing El Valle's value in light of disappointing drilling and operating results that were damaging its financial performance. Given Crown Point's limited cash resources, Crown Point acted reasonably in narrowing its strategic focus to Tierra del Fuego ("TDF") and the Neuquén basin.