Ann: Quarterly Report , page-8

oops nearly forgot to read the back page about loans and working capitol.

Current
Convertible Note – unsecured (i) 1,802,217 -
Related party loans – unsecured (ii) 2,115,210 -
Other loans (iii) 2,583,625 -
Related party working capital facility (iv) 276,801 -
Other facilities 66,457 -
6,844,310 -
(i) The parent entity issued $2,500,000 of convertible notes on 16 May 2012. The convertible notes may be converted at the option of the holder at
either: 90% of the average 5 day VWAP during the 20 trading days immediately prior to the relevant Conversion Notice Date or 130% of the average
daily VWAP during the 20 trading days immediately prior to the Execution Date (execution date is 15 May 2012). The investor may not elect the
2nd option once it has been utilised in relation to the conversion of, in aggregate, AUD $1,500,000 of the face value of the convertible securities.
The notes do not bear interest. Any amount that has not been converted by 16 May 2013 is to be repaid in cash. 9,723,977 shares and 12,500,000
unlisted options exercisable at $0.2216 on or before 15 May 2015 were issued in accordance with the convertible note agreement. These shares
and options have not been treated as share based payments; rather their value has been taken into consideration when calculating the derivative
arising on these convertible notes. Subsequent to year end, $1,250,000 was converted to equity through the issue of shares.
(ii) Loan is interest bearing at 10% per annum and repayable on or before 31 December 2012.
(iii) Loan is interest bearing at 10% per annum and repayable on or before 31 December 2012.
(iv) The working capital facility has been provided by Stonebridge Trading 36 Pty Ltd, a company with a non-controlling interest in the Group.
The facility is interest free with no set term of repayment.