Replies to post #79744 on North Bay Resources Inc (NBRI)

[es1]

Here you go. Edited in blue to survive the ToS

Hi xxxxx; As I have explained to others who have asked, this is the unexpected consequence of seeing our share price fall below a penny, which in part is thanks toa person and the other persistent people who do not believe the CEO on a particular message board who encourage shareholders to sell their shares. Many of our notes have covenants that require us to increase the amount of stock reserved for potential future issuance by as much as five times over and above the number of shares that are actually needed if the notes were to convert today. We did not expect this to happen when we increased our authorized limit last spring, and now we have to increase the limit yet again in order to legally increase our reserves. It does NOT mean all those shares will ever be issued. It simply provides us with enough headroom to remain in compliance with our note agreements. I should mention that we did not have to increase the limit by as much as we did, but this procedure is expensive, and having just done it last spring, I did not want to put us in a position where we might have to do it yet again in a few months if an increase of just 100M shares or so was not sufficient. We can always lower it once we begin generating enough revenue to begin paying off the notes in cash and can then eliminate the need for reserves. I am hoping to see some meaningful revenue begin to flow within the next month or two, and when that happens, this horrendous down market we've been in lately should begin to reverse itself. Of course, you should know that the A/S means absolutely nothing. It is a mere legal requirement. Even the O/S means nothing. It is the public float that determines how many shares are available for trading, and that is still less than 200M. Hope this helps, but I am sorry to hear you as so negative. If all I had to look at each day was the share price, I might feel the same way. But I remain very optimistic, as I see everyday the progress we are making towards achieving our goals. Would you rather we stop issuing shares to raise capital and let the Ruby mine and all of our other Canadian properties forfeit? What would our shares be worth then if we then had no assets and no possibility of becoming a profitable company? Becoming profitable is what this is all about, and our share capital is a means to that end. Thanks, * P *

Seems to not have occurred that they could sell the shares on the open market and make 30% more for each share and causing 30% less dilution.