Besra announced that the Vietnam General Department of Customs has suspended the enforcement of its export tax assessments pending completion of the complaints appeal process. The company regards this as a positive development. The company also advises that it has recently been made aware of a proposal submitted by Vietnam's Ministry of Finance to the National Assembly to increase royalty rates on gold and other minerals.

Vietnam's law allows royalties on gold to range between 9% and 25%. Currently the company's Phuoc Son mine attracts a 15% royalty and its Bong Mieu mine 3%. The Bong Mieu royalty is fixed in its investment certificate whereas the Phuoc Son royalty is determined by the law applicable from time to time.

The position in Vietnam is in stark contrast to East Malaysia where the company's flagship Bau property, currently nearing completion of Stage One feasibility study, enjoys a zero percentage royalty rate. The royalty rates are expected to be discussed and decided upon by the Standing Committee of the Vietnam National Assembly in mid October.