financial position

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The net assets of the Group have decreased by $45,605,913 from $110,128,173 at 30 June 2011 to $64,522,260 at 30 June
2012. This decrease has resulted from the increase in debt at 30 June 2012 as the Group progresses its development
of Penumbra; the incurrence of a year to date net loss of $49,862,039; an approximate 14% decrease in the net asset
value of the Group’s South African subsidiary on translation from ZAR to AUD; offset by an increase in share capital of
approximately $30,000,000.
The Group does need to raise additional capital to meet certain current liability commitments (approx. $15m) such as
the completion of the Mashala acquisition (86% to 100%). The Group is currently proceeding with a number of financing
and re-financing options (eg sale of assets and interests in projects) in order to meet these obligations. Should the Group
not realise the proceeds from the current financing options it may not be able to continue as a going concern without
restructuring certain liability commitments.