Ann: Early Repayment of Loan by Magontec , page-7

plus 400+million options to be converted by 03.01.2014...

potentially over 1 billion (1000 million) shares on issue if all options converted.

if converted approx. $8million to be added to cash on hand for new plant with construction underway.

Large holders will convert their options to maintain their position otherwise 2/3 dilution might occur.

Retail holders will waver and miss out on converting options - suggest that post 03.01.2014, approx. 850million shares will be on issue.

then Market capitalisation =$21million

Turnover = $120million and set to rise

Assets and cash will be in excess of market cap

Debt reduced by equity conversion

well placed for 2014