Ann: Notice of General Meeting /Ind. Expert's, page-2

re: Ann: Notice of General Meeting /Ind. Expe... A lot of dilution-- but this sticks out--

12. We have assessed AusTex’s per share value on a controlling basis to range
between A$0.20 to $A0.27 on a diluted basis and between A$0.23 to A$0.35
on an undiluted basis. As these values are all greater than both the minority
value of shares held by Non-Associated Shareholders and the effective
subscription price, we consider the Future Conversion to be not fair to the
Non-Associated Shareholders under the RG111 test.
Source: PwC Securities analysis

The Future Conversion is reasonable.
13. PwC Securities’ view is that the overall advantages and disadvantages of the
Future Conversion is finely balanced. However, we believe that the risk of a
possible curtailment in the Company’s exploration activities as a result of
Ptolemy redeeming its Preference Shares (unlikely but possible) coupled with
the higher dividend payments on the RPB shares tilts the balance towards the
Future Conversion being slightly more advantageous to the Non-Associated
Shareholders.