Virgin Gold Convertible Preferred Stocks (CPS)

• 2.001 What is Virgin Gold CPS?
  • Virgin Gold is currently undergoing an exercise that issues fresh Convertible Preferred Stocks (CPS). It invites willing investors worldwide to participate in this offering exercise. CPS are shares with conversion prices named at issuance, so they can be converted to the company's common stocks at the set rate. Virgin Gold CPS holders will receive fixed monthly dividends and reserve full rights to convert their stocks into common stocks. This can be done by paying 50% of the price difference between their CPS subscription price and IPO price when Virgin Gold launches an Initial Public Offering (IPO) or reserves a take-over listing. For example, if a Virgin Gold CPS holder subscribed his/her CPS at $2.00 and the IPO offering price is $10.00; he/she will then need to pay 50% x (10.00 – 2.00) = $4.00 per share in order to convert his CPS to public listed common shares.
• 2.002 What if I do not wish to convert my Virgin Gold CPS into common stocks an IPO or public listing exercise?
  • Subject to the listing terms and conditions, we will refund to you the full amount of monies equivalent to our latest CPS price, prior to listing.
• 2.003 What benefits do Virgin Gold CPS holders have?
  • Virgin Gold CPS holders are entitled to a fixed monthly dividend payment as agreed at the time of subscription, are able to enjoy appreciation of Virgin Gold share value (capital gain) and have a gold trading margin for holding/trading paper gold position.
• 2.004 How would I know if I am allowed to subscribe to Virgin Gold CPS under the financial regulations of my country?
  • Potential investors should consult local professional financial and legal advisors to obtain advice in relation to their country’s financial regulations before subscribing to Virgin Gold CPS or referring potential shareholders.
• 2.005 What is the minimum and maximum number of shares I can subscribe to?
  • The minimum and maximum amount of shares that you can subscribe to is from 1,000 to 999,900. The minimum amount may be raised from time to time but the maximum amount is fixed by CPS subscription Terms and Conditions.
• 2.006 How can I subscribe to Virgin Gold CPS?
  • You may begin subscribing to CPS once you have credits in your credit account. You can do so by logging on to your online shareholder account. Click on the "1.0 Account" link, and then "1.11 Subscribe Shares". Indicate the number of shares you wish to subscribe to. The amount of credits needed for subscription is equal to the number of shares multiplied by the price per share. To learn more about "Credit Top Up" within your credit account, please log in to your shareholder account and go to "1.14 Credit Top Up"
• 2.007 When should I expect my first return after I subscribe to CPS?
  • Your return is in the form of dividends in troy ounce(s) of gold and will be credited to your gold account each month. If you subscribed to Virgin Gold CPS on the 3rd of January, you will receive your dividend on the 3rd day of each month. On months when there are no 29th, 30th and 31st days, your dividend will be paid on the next payment day (on the 1st of the following month)
• 2.008 How much dividend can I expect from Virgin Gold CPS?
  • Preferred Stock holders will have their dividend amounts fixed upon subscription to their shares. If the dividend offered/agreed upon subscription was 1 ounce per 10,000 shares, they will then receive 1 ounce as agreed.
• 2.009 To which account will the dividend be paid?
  • All Virgin Gold CPS dividends are credited in the shareholder’s gold account.
• 2.010 Why are dividends paid in units of gold?
  • As a gold-stake mining company, it is natural that returns come in units of gold. Returns being paid in gold also help in safeguarding the interests of both the company and our shareholders. Please refer to the link "Our Investors"---> "Risk Factors" at our website for more information.
• 2.011 Can I un-subscribe my Convertible Preferred Shares (CPS)?
  • Shareholders may unsubscribe their purchased shares after 45 days from the initial subscription date.
• 2.012 Is my un-subscription request approved immediately?
  • No. After requesting un-subscription, a shareholder must wait 3-5 working days for our administrative staff to process and approve the request.
• 2.013 When will I get reimbursed for my un-subscription?
  • You must wait 45 days after your un-subscription request has been approved by the company to be reimbursed.
• 2.014 How is my un-subscription payment reimbursed to me?
  • Forty five (45) days after approval, credits equivalent to your un-subscription amount minus any miscellaneous charges will be transferred to your credit account.
• 2.015 Are there any charges imposed on un-subscription of CPS?
  • To date no administrative charges have been imposed.
• 2.016 Why does it take up to 90-100 days from the day I subscribe to un-subscribed and get reimbursed?
  • When a shareholder subscribes to Virgin Gold CPS, the money is put to good use in order to generate good returns to shareholders for the long run. Virgin Gold as a business corporation invests its shareholders’ money into income generating operations. Such operations do not generate returns overnight and absolutely cannot be interrupted only because some shareholders want to pull out of their investment. Un-subscription is a disruption to corporate financial planning and management. Un-subscription of shares by a shareholder means that Virgin Gold has to replace them with new shareholder(s) so that this does not interfere with our ongoing business operations. It therefore takes time to process refunds to shareholders who un-subscription their shares. Virgin Gold does not operate like a bank whereby depositors may transfer their money in and out at their own convenience.
• 2.017 How do I un-subscribe my shares?
  • Log in to your shareholder's portal; click on the "1.11 Subscribe Shares" link and you will see a list of all your subscriptions. Under the "Action" column you may click on "Un-subscription" for the transaction you would like to un-subscribe.
• 2.018 If I subscribed to 20,000 shares in one transaction, can I un-subscribe 5,000 shares from that transaction?
  • Yes. A shareholder may unsubscribe any amount of shares (smallest amount is 10 shares as our share certificate is issued as a "Ten (10) Shares Certificate"). The minimum amount of CPS that must be maintained in an active shareholder account is currently set at 1,000. This minimum number of shares may be raised in the future.
• 2.019 Are there any requirements I must fulfill before I can unsubscribe my Virgin Gold CPS?
  • Your Gold Trading account must not have any outstanding/open deals when you unsubscribe your shares. This is because your trading margin is allocated for free using your CPS as collateral. Should you need to unsubscribe your shares, you will need to make sure that your trading account’s unrealized profit/loss is equal to zero.
• 2.020 I tried to unsubscribe my CPS online but the system does not allow me to do so. Why is that so?
  • First, if you have any gold trading transaction that is still "Open", you may not be allowed to unsubscribe your CPS until the transaction status is "Closed". Secondly, you may only unsubscribe your shares after a minimum period of 45 days from the subscription date.
• 2.021 Can all Virgin Gold CPS be unsubscribed?
  • ONLY purchased Virgin Gold CPS can be unsubscribed. Other classes including Free or Bonus CPS issued by Virgin Gold CPS cannot be unsubscribed.
• 2.022 How can I reinvest my CPS dividends??
  • Since your dividend is paid in ounces of gold, you will need to convert your gold units into credit, and then subscribe to more Virgin Gold CPS through your credit account.
• 2.023 Is there an auto-reinvestment module that shareholders can use for convenient reinvestments?
  • We are still working on an auto-reinvestment mechanism that could possibly be ready in 2012.
• 2.024 Is Virgin Gold CPS transferable among shareholders?
  • Yes, Virgin Gold CPS can be transferred to another active shareholder (shareholder who maintains a minimum of 1,000 Virgin Gold CPS shares). It should also be noted that the transfer of CPS between shareholders is a private arrangement whereby Virgin Gold CPS will not be responsible if one or another party claims that personal payment arrangements or agreements were not fulfilled.
• 2.025 How do I transfer my CPS to another shareholder?
  • First of all, only CPS shares that have been subscribed to for more than 45 days are transferable. To transfer your CPS, log in to your shareholder’s portal; click on the “1.11 Subscribe Shares” link and you will see a list of all your CPS subscriptions. Under the “Action” column you may click on “Transfer” for the CPS transaction that you intend to transfer. Indicate the receiving shareholder ID and number of shares you intend to transfer on the pop-up page and click “Transfer”. Take note that shares can only be transferred to active shareholders (Shareholders with a minimum of 1,000 CPS in their account)
• 2.026 Is the transfer of shares an immediate/real-time process?
  • No. Share transfers require approval by the Virgin Gold administrative department. Under normal circumstances, it takes 3 working days for share transfers to be approved. Before share transfers are approved, both shareholders and administrative officers have the right to cancel and reject the application.
    There will be a USD10.00 processing fee for this application. Charges will be deducted from the shareholder making the share transfer request.
• 2.027 If I subscribed to 10,000 shares in one transaction, can I transfer 3,000 shares to another shareholder?
  • Yes, but before you transfer the shares, you will first need to close all outstanding/open transactions in your Gold Trading account. This is because your trading margin is directly correlated to the amount of shares that you have in your account. Just take note that an active shareholder of Virgin Gold CPS needs to maintain a minimum of 1,000 CPS.
• 2.028 If the shareholder that I referred transfers his/her CPS to another shareholder, will my bonus shares be removed?
  • If your referred shareholder transfers his/her CPS to another shareholder, your bonus shares will not be affected and you may continue to receive dividends from these bonus shares.
• 2.029 If the shareholder that I referred unsubscribes his/her CPS, will this affect my bonus shares?
  • If your referred shareholder unsubscribe his/her CPS, your bonus shares will be automatically be returned to the company and dividends will not be paid for these bonus shares.
• 2.030 Do shareholders receive a copy of the share certificate for the subscribed CPS?
  • Yes, all shareholders are entitled to receive a copy of the share certificate for all CPS subscribed in the form of an Electronic Certificate (E-Cert). All E-Certs are issued for 10 shares per certificate. To view your E-Cert, go to "3.0 Reports" followed by "3.23 Certificate". Click on "View" and the list of E-Certs will be displayed. Proceed to click on the certificate number to view each E-Cert. Certificates will only be available for shareholders who have authenticated their accounts. For authentication, shareholders must log in and go to "4.21 Submit Supporting Documents".