Ann: AGM 25.11.2016 - Results of Meeting, page-6

1. Debt was converted to shares which means a dilution in shares.
2. Expenditure on improving irrigation has reduced cost of feed.
3. Roll out of CDC productions in VIC and Southern NSW will increase revenue

Please see net profits between July to October which for the 4 months has seen a loss o $0.563M. Assuming that the rest of the 8 months shows a profit, I do not expect to see a full year profit of anything more than $1.5M. The current production figures from CDC do not support a hugh profits. Extrapolation of 4 months actual revenues to 12 months and even factoring an increase in revenues due to above factors does not see any appreciable increase in the bottom line value. What we have seen in the recent announcement is narratives and no projections in volumes or values. CDC needs to source $10M in less than 3 years to repay the loan. Could you show where this amount is coming from. There is a dire need to increase the output of milk and milk products to achieve the revenue values which will then see a vast improvement in the net profits.