Maxy Gold CEO Andre Gauthier has told shareholders he is unable to find an answer to the recent sharp drop in the company"s share price and has allayed shareholders" fears about certain reporting procedures.

He says: "We do not believe that the recent drop in share value is justified. I would like to assure you that we are working to increase shareholder value and we ask for our shareholders" patience in this regards.

"There is nothing to have major concern regarding, rather the contrary, it is now a bargain but hopefully it will reverse soon. I would like to tell you I had seen it coming, that I have an explanation, but unfortunately I have not.

"So far we have always delivered what we said we would but we did not always do it in time, not due to management, but rather due to some China deal habits, which oblige us to be patient to comply with all rules. We are not alone in this as many other Canadian companies involved in China have experienced the same situation," Andre Gauthier says.

"The lateness to obtain the business licence in Qinghai is certainly an irritant and a problem for most of the investors as it is for me. I am very confident that we will have it soon as our partner told us this after many meetings with authorities. Our Chinese partner has too much at stake in this.

"I would like to assure shareholders that our quality control procedures for sampling and assaying are very strict. In China we have brought foreigners to teach and it is very important to follow-up on training by regular audits of our method.

"Maxy is a very small and starting company compared to other groups and, coming from 18 years at Cambior, a former mid-tier gold producer, I must say that the Maxy technical team is applying the same quality control that we were applying at Cambior. Quality control is essential in gold sampling and assaying," Andre Gauthier says.