TESORO GOLD LTD — AGM Information 2008

Oct 30, 2008

CHAIRMAN’S ADDRESS Annual General Meeting of Shareholders Friday, 31 October 2008

We are currently in a very difficult investment market. For the year ended 30 June 2008, while VTP performed slightly ahead of the ASX 300 Accumulation index, at -13.09% compared to -13.67%, it was a difficult year in an absolute sense.

Since 30 June 2008 the ASX300 has dropped from 33,860 to 24,949 at 27 October, a drop of another 26.3% on top of last years drops. This compares to a negative return of 24.5% on the VTP gross portfolio over the same period. The fund manager, Three Pillars Portfolio Managers, has outperformed the index by approximately 1.8% percent for the financial year to date. It is encouraging that this has been achieved through a consistent and disciplined approach over the last eighteen months.

Being an active investor in a difficult investment market, the negative movements in our portfolio are recognised in our profit and loss and have resulted in negative retained earnings. As a result we are unlikely to be in a position to pay a dividend in relation to the current year.

We hope that next year we can revert to paying dividends at a rate higher than the dividend yield of the underlying portfolio. Dividends can be paid from that year’s profits without a requirement to recover past negative retained earnings.

We remain committed to capital management to ensure that the difference between the share price and net tangible assets is as small as possible. A range of capital management options have been considered. We realise that many shareholders invest in Listed Investment Companies in part to achieve a steady cash flow.

As a capital management initiative VTP has put in place a share buyback. The valuation parameters within which the buy-back will be conducted will aim to buy-back shares only where the estimated discount to our estimate of NTA after tax is greater than 5%. We have a statutory capacity to buy back up to 10% of the smallest number of voting shares on issue at any time in the past 12 months, but are likely to limit the buyback to around the cash level of recent dividend payments. As we are not in a position to pay a dividend currently and the market is currently undervaluing VTP shares, a share buyback supports shareholders who may wish to liquidate part of their portfolio. In addition, the purchase of shares, currently undervalued by the market, will increase the NTA on the remaining shares.

We do not see share buybacks as a regular initiative, but do consider it an important support in the current unusual market. We will continue to focus on portfolio performance, liquidity, management expense ratio, distributions to shareholders and communication with shareholders, brokers and investment advisors.

While nobody can be certain of the future, the stock market appears to be better value than for many years. We are in a strong position to benefit from opportunities that should arise when the market volatility eases. The portfolio is designed to outperform the market so as to provide you with superior returns over the medium to long term.

I would like to thank you for your continued support throughout the year.

David Iliffe Chairman

van Eyk Three Pillars Limited ABN 91 106 854 175 Level 7, 20 Hunter St, Sydney NSW 2000 GPO Box 5482, Sydney NSW 2001 P (02) 8236 7701 F (02) 9221 1194

www.vaneyk.com.au www.threepillars.vaneyk.com.au