TESORO GOLD LTD — AGM Information 2005

Nov 9, 2005

CHAIRMAN'S ADDRESS Annual General Meeting of Shareholders Thursday, 10 November 2005

van Eyk Three Pillars had a strong year in terms of absolute returns.

The Company has a profit after tax of \$7.8 million, compared to a profit after tax of \$2.9 million for the five months to 30 June 2004. Movements in the investment portfolio are recognised in the Statement of Financial Performance.

The Net Tangible Asset backing per share (net of tax) has increased from \$1.03 at 30 June 2004 to \$1.07 at 30 June 2005, after payment of fully franked dividends of 7 cents per share. The net tangible asset backing at 14^th October 2005 was \$1.15 per share after tax.

During the year 15.5 million share options were converted to shares. The option holders who exercised their options prior to the payment of the dividend received the final dividend of 5.5 cents per share.

van Eyk Three Pillars is not a traditional Listed Investment Company

• It has an actively traded portfolio, unlike the long-term buy and hold portfolios of the traditional LIC's.
• The aim of the Company is to pay a portion of the gains on the increased value of the investment portfolio as dividends, thereby enhancing the yield above that of the underlying yield of the portfolio.

In the announcement of 1 November 2005 the directors provided some clarity in regard to future dividend payments by indicating that the intension is to pay 8 cents per share in fully franked dividends each year.

We expect the payment of 8 cents in fully franked dividends – which is worth 11.4 cents before tax to an individual and more to a superannuation fund, will result in a re-rating of van Evk Three Pillars.

The payment of these dividends is supported by the accumulated profits net of tax of 17 cents at 14 October 2005 and the ongoing receipt of dividends on the shares in the investment portfolio. However, the Company can only pay dividends out of the accumulated profits or current year profits. While not expected, if the investment portfolio were to drop significantly the directors would need to review the dividend policy.

The prospectus noted van Eyk Three Pillars as a medium term investment, however some investors have a shorter-term perspective. The directors seek to balance the interests of shareholders to maximise shareholder value to all shareholders. The strategy to reduce or eliminate the share price discount to NTA noted earlier recognises the focus of the directors on ensuring that shareholder value is enhanced in both the short and long term.

The investment portfolio of van Eyk Three Pillars is managed by van Eyk Research and the corporate management by White Funds Management Administration. The directors' responsibilities therefore do not include investment decisions, but rather ensuring that the managers operate in accordance with their mandates and in the best interest of the shareholders. The board also addresses issues of corporate governance, reviews corporate strategy and monitors the timeliness and accuracy of reporting to shareholders.

As noted by my fellow director, the investment mandate is a contrarian approach, seeking to buy stocks that represent good value and therefore should be re-rated. While the investment returns since inception are extremely strong in absolute terms, they are slightly below the index. In such a strong momentum market it has been a good performance to remain in touch with the index. When the market changes, we expect the contrarian approach to place us well. Interestingly, such a change in the market is also likely to bring Listed Investment Companies back in favour. LIC's tend to trade at a discount in bull markets, but are more popular in a more normal market. We expect that the double impact of a re-rating of LIC's and improved underlying performance of the investment portfolio relative to the index will significantly enhance future shareholder value.

Of course no one can pick the timing of changes in the market. It is for this reason that LIC's, like most share investments, should be undertaken for the medium or long term.

The directors consider the outlook for the company is strong. The defined van Eyk investment philosophy will be maintained and should place us in a strong position as the current momentum market changes. We will continue to monitor the share price to NTA and will implement strategies to enhance the shareholder value. The dividend is intended to increase the demand for van Eyk Three Pillars shares through enhancing the dividend vield to over twice the market average.

I thank you for your support.

$D.J.$ lliffe Chairman