Hey Sagan,

If you have any doubts about Salnikov's job, I'll just repost this email chain from May/June 2006 where CorvetteMark tried to get confirmation that RSM had indeed audited Aurus as Parkin claimed. He discovered that RSM did not in fact have an auditing agreement with Aurus at that time, but it is clear that they do now. Through means completely independent of 2c, he exchanged many emails with RSM seeking the audit, and eventually was lead - THROUGH COMPANY CHANNELS - to the very same person in the video.

IF there is any manipulation going on, or selling, I feel strongly the Russians in the video have nothing to do with it. Canadian partners like Parkin and Grancharoff still have to prove their integrity on the stock side of things, to me at least.

If a picture is the only proof that will satisfy you, then why don't you mail his video image to RSM Top Audit in Russia and ask for confirmation. Why do you keep pestering 2create to do your work for you?

I've deleted Mark's real name from the chain. Comments in bold are from CorvetteMark. (I hope he doesn't mind me reposting this, but it feels relevant again...)


05/03/2006 04:34

To rsmcommunications@rsmi.com

Subject Aurus Coporation....

To Whom it May Concern;

I am trying to find the audited financial statements just completed by RSMI for their client, Aurus Corporation (a exploratory mining venture). Any info you can provide me on how I might aquire this information is greatly appreciated.

Thank you,

Mark

My email was actually forwarded to 3 different people at RSM's London office that day and an email was sent to me stating that it had been forwarded! see below....

Abdulaziz Loonat
05/04/2006 00:05

To:
Tessa Rowland/London/RSM_Europe/RSMi@RSMi,
Jean Stephens/London/RSM_Europe/RSMi@RSMi,
Gillian Hawkes/London/RSM_Europe/RSMi@RSMi


Subject: Aurus Coporation....



The following message was originally delivered to RSMCommunications.com - This messages has been forward to you. The original subject of the messages has been retained.

I was like wow....they're actually looking into it. Well about 2 weeks later on 5/15/06, a Gillian Hawks from their London office emailed me the below;

Gillian.Hawkes@rsmi.com wrote:

Dear Mr Wilson

Thank you for your enquiry. Unfortunately, this information is not readily available as I do not have lists of all our member firm's clients. Do you know which firm, or which country carried out the audit? I will then be able to provide you with contact details of that firm.

Kind regards

Gill Hawkes
PR & Communications
RSM International
Tel: +44 (0)20 7601 1092
----- Forwarded by Gillian Hawkes/London/RSM_Europe/RSMi on 15/05/2006 15:42 -----

So in order to help me she needed a little more info...so I of course sent it to her (albeit it took me about 2 weeks to respond...lol!)

05/26/2006 20:19
To: Gillian.Hawkes@rsmi.com
cc:
Subject: Re: Fw: Aurus Coporation....

Dear Gill,

Thanks for getting back with me. I do not know the name of the firm but believe it to be RSM Top Audit out of Russia. Aurus Corp. is a Russian gold mining company with ties to Canada. They have said that all reporting and auditing is done through RSM Top Audit. Any help/info you can provide is most appreciated.

Thanks,

Mark

I was hoping that she would give me a Russian contact WHO understood English! And that wish was actually granted!

Hi Mark

I would suggest that you contact RSM Top Audit directly and make your request. Their details are:

RSM Top Audit
Building 2
54 Bolshaya Ordynka Street
Moscow 119017

Tel: 00 7 095 363 2847

The best person to contact is Adel Soroker who speaks English. Her email is asoroker@top-audit.ru

Kind regards

Gill Hawkes
PR & Communications
RSM International
Tel: +44 (0)20 7601 1092

I thanked Gill very much for her time and effort and assured her I would contact Adel promptly. Here is the email I sent to Adel.

Date: Wed, 31 May 2006 08:48:22 -0700 (PDT)
From: "Mark"
Subject: Aurus Corp. audited financials....
To: asoroker@top-audit.ru

Ms. Adel Soroker,

Hello. I am an investor in Aurus Corporation (an exploratory mining venture) that is a client of RSM Top Audit. I am wanting to get several public items from you RSM. First off, I just want to be sure that indeed Aurus Corporation is a client of RSM top audit AND that you all have completed audited financial statements. If so, then I would like to get a copy of Aurus's audited financial statments which would be public information. Second, it is to my understanding that RSM Top Audit has also completed a full geological audit of Aurus's gold reserves and I would like a copy of that as well. Please feel free to email them to me or send them to my home address:

Mark
999 Anywhere St.
Lexington, KY

Thank you in advance Adel for your attention to my email and any info that you can provide to me.

Sincerely,

Mark

Adel obviously is an assistant or something and forwarded my email to RSM Top Audit's Head of Investment Audit....Mr. Sergey V. Salnikov!!! I got the head of investment audit at the Russian firm! Below is his email...

To: corvettemark
Subject: your inquiry
From: ASoskin@top-audit.ru Add to Address Book Add Mobile Alert
Date: Thu, 8 Jun 2006 12:00:11 +0400


Dear Mark,

Thank you for your e-mail. Please be advised that specialists of the Investment Audit Department of RSM Top-Audit have prepared a business plan for the investment project for setting up a multi-product association to extract and process natural resources and recover precious and rare-earth metals in Transbaikalia and Chukotka. The Project has been prepared in accordance with the international investment project standards under Agreement No. 08t24 dated 27.10.2004 on order from Mining Corporation Zabaikalgeoprom. Zabaikalgeoprom has become part of Aurus Corporation by means of merger. As regards the deposits mentioned in the business plan, their mineral reserves are acknowledged by currently valid licenses to develop them, geologic information, and reports of the RF State Reserves Commission.

The financial and business operations of Zabaikalgeoprom as of 01.01.2006 had been audited by the Russian auditing and consulting firm Complex-Audit and the company accounts were found reliable (Audit Report dated 01.03.2006).

RSM Top-Audit and Aurus Corporation are currently negotiating an audit agreement. As of today, no such agreements were signed and, accordingly, we have not audited this company. Besides, RSM Top-Audit does not conduct geological audit of gold reserves and, again, no such audit has been conducted.

In accordance with the international auditing and business ethics standards, RSM Top-Audit observes the conditions of confidentiality in client relations. All information about Aurus Corporation is available on its corporate web site, and it is the company that is responsible for the reliability of such information.

Sincerely,

Sergey V. Salnikov
Head of Investment Audit

I just watched it. In the past year I have been careful to invest my pinksheet money into real companies. Real companies don't always guarantee a good investment (damn you, CWRN!!). They have to be intelligently and prudently run. I've always known that Aurus was real, but I was never sure about the folks running the show and that was my sole source of doubt. This video answers the questions that I had no way of answering for myself. Thank you, thank you. This video's authenticity speaks for itself.

And, I believe, Mr. Salinkov is the very same guy that Corvette Mark exchanged a couple of emails with over the summer, was he not? And those emails verified Aurus's ownership - through RSM Top Audit - of the Zabaikalgeoprom properties. This was before Krong was acquired.

2c, I have to admit, I was dubious about what a video could bring to the table, but I feel this changes the game entirely. Bravo.

Shoot, man. DivX is dead. I'll have to wait for morning. This should be good. Thanks, Mr. and Mrs. 2c.

Tell me, who are these "big boys" of whom you speak and why would they know any more than I do? Most of the "big boys" that trade in pinks (ie. market makers) couldn't give a rat's butt if a company is real or not - they play the investors, not the company. The real "big boys" don't go anywhere near pinks and wouldn't take the time to verify even a mailing address. I want to know what "big boys" are buying up ANY pinksheet gold company. You seem to have a lot of respect for these "big boys" and their buying habits. Who are they? Usually "big boys" refers to institutional investors that buy in large blocks. Are there pink sheet mutual funds or pensions I don't know about (and thankfully don't own!)??

OT: Well, I don't think he has any dealings with NWOG. Even though he is the moderator of the board, I think he knows about as much as anyone else. Nord Oil has changed a lot since they merged, and as the grammer of recent PR's suggests, it's ALL Russian at this point. I think NWOG is legit, but I wouldn't say it's a good investment. As CWRN has proven, legitimate pink companies don't always make good investments.

Do I think AURC is legit? Yes! Is it a good investment? That I can't say. The big question is whether or not Grancharoff knows how to prove a company's legitimacy with the shareholders. We have to keep in mind that if they know the company to be legit, then the question of legitimacy will eventually take care of itself. They are under no immediate timeline, even though we'd like to see it all settle sooner rather than later. WE want them to form a joint venture with a company like Barrick because of the wonderful things it will do to the share price, but I seriously doubt they want to share the profits just for the sake of legitmizing the company to American shareholders. How long will that take? No clue. I do find it quite ironic that now that the company actually has production to justify an increase in share price, it's near an all time low. Go figure.

2c, if the video is all that you claim, you will be compensated with donations. Let's the get the word out and kill these bashers.

You know, most of these bashers want AURC to fail because they want you to fail, and ultimately they don't care about the company or the rest of us who are invested. All the bashing is extremely personal and fact-free. For better or worse, you are now inextricably linked with this stock. Now that you've tied yourself so closely with the company's credibility, I think it would be wise to make it a donation-driven "shareware" video.

Your leaning towards "option #1" because so many are "undeserving" of the free info feeds the personal nature of this war. For the sake of the company and us loyal shareholders, you need to resist the urge to sink to their level and stay above it. I'll donate $10 if the video in fact proves authenticity. You may not make all of your money back in donations, but you certainly will in the eventual share price that results.

OT: I still have my 200k AURC shares at .25 - and I'm really wishing I'd taken a different trading strategy with it than buy and hold (a strategy I've completely soured on in the past year of pink investing - with CWRN being a MAJOR factor in that souring. Lesson learned).

I know enough about AURC to know that the assets they owned prior to getting Krong are actually owned by them. While I don't have such verification of the Krong assets, the early trust I built with them leads me to think they are not suddenly lying now. Even the fact that they removed Kylon from their website around the time that Krong was acquired shows me that they did give something up without doubling the share count. If it was all a scam, they would not have bothered to do that.

I do think all the bashers are keeping the stock down right now. It's a bit sad, because I believe 2create inadvertently spawned all these bashers with his heavy-handed moderation. He has done just as much to hurt the stock as help it. I think AURC will go on a serious run very soon. When it gets over .25 (which I feel certain it will), then I have to decide to whether to stay on the ferris wheel or get off. I'm not sure the potential return is worth all the heartburn. I know that when it gets over .20, I'm going to take any sell signals pretty seriously. Below .20, I figure I have so much at stake already for so long, that I'm just going to wait for something to happen. Hopefully soon I'll have 220k shares to brag of, which will also lower my break even to .225.

I think Aurus dumping Parkin was a great move. In the next couple of weeks, I might try to call that "new" auditor (not really new) and feel him out. He worked with Bio-Tracking before and was replaced when they first became Aurus. I found his phone number on the Canadian actor's union website, as an accountant that specializes in advising entertainers on taxes. At least he has a number!

Oh, I am in this stock. And I'm even tempted to get more at this level, but I still think this stock will be a "flipper" for a while yet.

Joe

If I was you jerseyboy, I would be ready to flip whatever you buy tomorrow on the news of the JV's. Production will still be 120 days (4 months) away, and I am almost certain that the price will drop again either due to financing arrangements or doubts about execution. Could be a decent 2 or 3 week play right now, though.

Are you kidding me? February 15th was to be the date of record. You are unlikely to actually recieve shares for another month or so. It takes that long for shares to get distributed. I want confirmation that the date of record has passed or if it moved again.

None of the .pk's are working on Yahoo this morning. Tech glitch. Or they are working inconsistently.

Where did you read this?

Oh, and Creede, if you're reading this, I still hold NNRF and will continue to post news on the Flamingoes as it comes up.

Joe

Hey there Brent and everyone,

I haven't been around much lately by design. I've decided to change my investing habits a bit after getting burned a few times here in the pinks. I'm still holding all of my AURC and things there are looking brighter and brighter, but I think other than that one stock, I'm out of the pinks for good. I'll still do OTCBB, but nothing that doesn't report.

In generous offer that was totally out of character for my dad he paid for a subscription and introductory class for Market Investors Investools this weekend and I came away pretty impressed. I'm going to dive deep into technicals to help timing my trades and use covered calls to generate income on flat stocks. I think it will be a safer and more productive way to invest. Rather than shooting for the home run here, I'm going to put consistent compound interest to work. I have a lot of studying to do and I'm hoping AURC will provide me with a nice pile to start with, but we'll see about that. I really want to become an expert in this stuff and get away from the buy and hold on for dear life approach I've been using. With a better understanding of technicals I really would've been better equipped to hold my early gains cut my losses. I've reviewed my stock holdings over the past year and calculated where I would have made my buys and sells had I used the right kind of approach and the difference is astonishing.

I appreciate the integrity shown on this board and I may drop in from time to time - hopefully to celebrate AURC!

I think that's a good buy on AURC. I've been in AURC at .25 with 200k shares for 10 months now. I have such a large chunk of change in it already, I've resisted averaging down. I still think I'll do quite well there.

I just wish I'd resisted averaging down on this stock. Still, it does appear that a base is forming between .0003 and .0002. Astrolabe is the group of government types that secured the licenses for Bob. They definitely have a vested interest in getting production going as they will get 3% of the proceeds.

Of course, now that I've stated out loud that it looks like a base is forming, it is almost certain to fall through. Or, wait, maybe that only happens when I actually buy based on that assumption....

Heh. Nothing happens fast with this company. I look forward to reading the details.

Looks like we've hit the "wait and see" price in the low teens. Nice to see some resistance finally.

Will be nice to move past the "wait" part and onto the "see" part.

I don't generally pick a "buy price", especially with a company that is in the process of dilution. It all depends on company circumstances and when I get a sense a turnaround is near. With the real possibility of further dilution, with the road being delayed yet again, with further financing still required, I just don't think that now is the time to buy. I do believe that there WILL be a time to buy, but I can't say when that will be. It certainly would not be until the heavy dilution ceases and progress is being made on the ground.

Yes, .0005 is low, but .0003 is lower. I'm not saying it will go that low, but this stock has exceeded my every expectation about "bottom" and I'm tired of trying to figure it out. I'm just waiting for good news that will have a sustained impact.

I agree. In the last PR, the beginning of the road was put off another month to February. At SOME point this will become a buy (I hope), but it's not now. They aren't making their dates and we don't know if the dilution has stopped. The road at least needs to get started and financing deals need to be disclosed before any buying can begin.

Revenues from Mexico should be realized before the Philippines. It will be interesting to see what affect that might have on the price. Might be a good flipping opportunity, but I don't think a one-off sale from stockpiled ore in Mexico will have any lasting effect on the PPS.

Oops. Sorry I missed the contest. I haven't been online much through the holidays. Hope everyone had a good one. My Cal team and USC earned a little redemption for the PAC-10. I never believed Michigan was as good as advertised. Too many close games against truly mediocre opponents. Boise State was a blast to watch!

I probably would have thrown CWRN into the mix as a dark horse at .01 (currently a sub-penny). Or maybe GORO.

Here's to a great penny stock year for 2007.

Legit company.

Recent split.

Appears to be financing through dilution at the moment, and the company isn't saying much about it.

Good story.

Lots of high grade surface iron ore and huge jade reserves.

Needs to build a road and a jetty in order to ship - 3-4 month project once funded.

Expecting a financing agreement and an off-take agreement with the 3rd largest steel mill in China and the beginning of road construction before the end of January.

Good one to watch, but not sure where the bottom will be vis-a-vis dilution and financing.

I'm espcially surprised at the fall given that this is a reporting company. I know this comes with the territory for non-reporting pinksheets, but usually this kind of collapse comes along with fears of a scam, not with the seeking of financing for a legitimate enterprise.

Ha. Blew past your ten cent buys pretty quick today! It makes me laugh so hard I want to cry. Funny that I had a sell on at .27 when the price was .26 and I said to myself that I would regret not dipping down. I regret it.

I had expected this after talking with my cousin who works for a giant iron ore miner. He said to expect a modest increase in 2007 and the prices to start falling in 2008 as there are a lot of major new iron mines going into production that year. Bob needs to work fast to take advantage of the current market.

I just called the TA.

O/S: 832 million
Float: 334 million

This means Cotton & Western has issued about 200 million shares since the split. We need an explanation...

Thanks Aston. I've been torn whether or not to sell the rest of my shares. I rode one stock this year from .55 to .006 and I'm getting a sense of deja vu here. I think this stock may continue to fall as long as the silence lasts. They said in the quarterly that they expected financing to take place by the end of the year. End of January sounds like a delay.

*sigh* If we don't overpay for the financing and acquisitions then we should be okay, but usually these under-financed companies don't have much choice. The biggest problem with the falling share price is that it sets the bar ever lower so that a good run on great news might not even bring you back to even before it starts to drift down again.

I thought I was being so good with this stock, too, watching it for months before buying. Ah, well.

Si, senior.

The Frankfurt statement isn't true. Frankfurt's lack of oversight can facilitate naked shorting and make it worse, but any stock on an unregulated market - like the pinksheets - can be naked shorted. Basically the "borrowed" shares go undelivered indefinitely, or until the company proves it's capable of generating revenues and future growth. When it looks as if the stock is starting to climb and won't look back, that will force the shorts to buy back shares to cover their positions quickly because legitmate, profitable companies have legitimate means to account for all shares, such as paying cash dividends.

Occasionally you'll see this behviour in stocks that have lain dormant for many a moon. A real company with real revenues will sometimes quietly take over one of these companies that have been shorted into oblivion. When the market makers with the undelivered share realize it, they need to start covering at the lowest prices possible, thus driving the price up dramatically and quickly. It's rare, but I've seen it happen a couple of times this year. These are hard to find though until it is too late.

The two big horses I bet on for 2006 were CWRN and AURC. CWRN was a bust and AURC has taken longer than I expected to get to production. I have few doubts about AURC's legitimacy, although I'm mighty displeased with Monimpex's manipulation of the shareholders. I guess the next few months will be do or die for Aurus. I did make money on NDOL, but I pretty much lost all those gains (a little extra) here. My current hope is that AURC (scam or no) can bring me back from the dead.

If AURC goes the way of CWRN, then I'll chalk up my foray into the pinksheets as one EXPENSIVE failed experiment in investing. LOL.

Standard Registrar & Transfer of Draper, UT.

I guess another option could be that financing is already in place and the selling is a symptom of it, but then Bob DOES need to tell the shareholders what is going on.

Again, I'll call the TA and see what I can discover.

Joe

Well, our difference of opinion lies in the fact that you believe it is company insiders selling while I believe we are looking at some massive naked short positions. Neither is good, but if it is primarily shorting, then legitimate revenues will eventually force them to cover.

I think the company has been deceptive in the sense that when there is a change in direction, they don't advertise it. I think when the original statements are made, they reflect the true plans of the moment. I suspect Bullit is right that plans for the stock - not the company operations necessarily, but the stock - changed dramatically when this fell below .03. It think it is arguable whether or not that change will prove to be in the shareholder's best interests.

Since I find the statements about company operations to be consistent, I do think that there was sufficient capital (ie. Bob's wallet) to start a road when Bob made that statement. Bob may be using that money or may have decided not to use it, but the amount of shares being sold for the current price would not come close to generating the $1 million needed. And I feel strongly that Bob (although selectively communicative) is not a crook. If he is in negotiations for funding using the stock, it would not be to his advantage to flood the market with extra shares BEFORE the funding is in place. I think Bob has the sense not to consciously work against his own self-interest. The delay in starting the road may be because he decided not to thow his own savings at it, but selling ever diminishing share values into the market for $5,000 gains does not help the operations and would only make sense if this were a scam through and through and Bob was pocketing the dough (but his original shares remain restricted until March, so he would have to be manufacturing shares this very moment at a tremendous pace to effect all the selling).

I could be wrong, but I don't think that's the case and I don't think it's Bob doing the selling. I see of combination of naked shorts and tax selling as the culprits here.

I'll try calling the TA tomorrow and see what the counts look like.

In fact, I think I've learned a great lesson from this stock (or developed a great lesion, as my typo almost suggested) - do not invest in pinksheets that are not already funded!

The only reason to go public on the pinksheets for some of these companies (the legitimate ones, which I think CWRN is) is to get funding and that almost always spells dilution. After the funding is secured and the impact of dilution has taken effect, and there's no convertable poison-pill attached, THEN consider putting your money into it at a time when the business plan is well on it's way to taking shape. If the company truly has a great business plan and the funding is adequate and non-toxic, then your investment would be in better than average shape (average for the pinksheets anyway).

If the company already claims to be funded when you first discover it, then you have another risk to overcome. The most blatant scams (SLJB and CDCH come to mind) usually talk of existing revenues and funding do divert fears of dilution.

I think you guys are suggesting something more sinister than is actually going on with this stock, in my opinion. Even still, that doesn't make it a good investment at the moment.

In fact, maybe it's time I called them again...

Oh yes, they are talking. It's no problem getting the official share counts. I called the TA and got them last month. Now if only we could get a count of the imaginary shares....

OT: Jon, I can't PM you back, but thanks for the CWRN call out. It made me laugh. It was almost like rubbing it in after posting what I posted on that board. LOL. I can only shake my head...

Joe

The MM's know that this company is seeking financing and there are not too many options beyond issuing shares to do it. When the financing is announced, along with the new shares likely to issued, the MM's can almost guarantee this will go down further than WHEREVER the price currently is, so all the fake shares they can issue now are almost guaranteed to pay off.

The main culprit in the falling share price are the delays. The longer it takes to get to production and the longer we wait to hear the details of financing, the more time there is to sell fake shares into the market with virtually no risk.

I've been advising folks to stay away from this stock for months and I'll continue to do so until a path forward is made clear, because only then can the share price even think about recovering. I went against my own advice when I bought more at .0019. Shame on me.

The company can only fix these things with signed agreements and building a road. These things, apparently, take time - more time that Bob thought. It makes the shorts job very easy when target dates are not met. Bob has met some targets, but he's missed a lot of the big ones - like making his Mexican shipment, providing financials, and starting a damn road. Some of it isn't his fault and some of it is. But it all hurts the share price.

I think in late January is when we will start to stabilize - assuming by that time we know the financing package, an off-take deal with a prominant steel mill is signed, and the road starts getting built. Then it will likely stabilize, but not recover until the road is finished and ore starts getting delivered. Shorts will very gradually begin to cover, but they have plenty of time to do it and they will do everything they can not to drive the price up. THEN, when we are making regular shipments of ore, we can start talking about reporting and such and sticking it to the shorties. But I think that's AT LEAST six months off.

I'm extremely disappointed in this stock. I've lost over $30k here. I do think I can make it back in this stock by reinvesting at the right time, but not until things begin to develop.

Sad to say, but I have to agree with your assessment at this point. I throw my hands up trying to guess at where the bottom will be. The after hours trading has got to stop.

Bob, are you listening? You got some pretty great shareholders here that deserve better.

I was refering to the good Dr's baseless claims that the longs were selling out today. If you buy on lows and sell on highs, good for you. Playing the ups and downs is not what I am refering to. Longs can do that and still be longs. But deserting the company now when we are just starting to produce makes zero sense.

Look, Aurus has said all along that they started trading on the public markets in order to raise capital to increase production. They had over $400k in income in 2005 (but $1 million in losses). They increased reserves over the spring, but did NOT achieve their goal of raising the capital to INCREASE production. When they acquired Krong they finally got the processing plant they needed. The deal with New Consult got them the cash they needed. Those were the primary goals from the outset. Now they have the ability to become profitable. I don't know what you were expecting from Aurus before these pieces were put into place. They had NO MONEY, as the financials on the website CLEARLY indicated. What summer production are you talking about? If it was anything like their 2005 production that came to all of $600k in red ink (how could it not be?), then they shouldn't even bother.

Did you even look at the financials before you invested, or held for the long term. It says at the top "A Development Stage Company." I don't know any company that describes themselves that way that makes money. Q1 is when they move from developer to producer. THIS is what I've been holding for. Sell and leave now? PLEASE!

Actually, it's uncertainty that holds the price down. Those who have held long have more of a reason now than ever to keep holding. If the longs didn't sell during the 5 month summer silence, they certainly won't sell with production just beginning! I've held this long, why on earth would I sell now??

Good Dr, you are a flipper. You look for short term gains and move on. Your admitted trading strategy with this stock shows that. Why would you have any insight into how a long views company news and makes trading decisions?

The core value proposition is still strong. The company is not any more or less credible than before the talk of dividends. Those who have done their homework on this company have no reason to sell, other than impatience.

Actually, I'm never all that concerned about float. Valuation is dependent on the total O/S, whether or not those shares can be traded. If the O/S increases, restricted or not, each share is worth less. Float really only concerns price fluxuations and as such is only a big concern for short term traders. True value will be realized long term as long as dilution is not a never-ending feature of the stock structure. I just want to know when it will end and I'm hoping the financing details will be our clue.