Ann: Amendment to Convertible Note, page-23

This announcement doesn’t make sense.

You as shareholders are being asked to approve the amendment to:

1. fix the A$/US$ exchange rate that will apply to the issue and conversion of the Tranche A Convertible Notes at 0.745 and fix a minimum conversion price of A$0.005 (unless and until shareholders approve otherwise);
2. reduce the maturity date of the Tranche A Convertible Notes from 12 to 6 months if shareholder approval as described in 1 above is not obtained;

The announcement states that if you approve, then:

“…the Tranche A Convertible Notes will be amended to permit conversion of those Tranche A Convertible Notes to occur with a floating A$/US$ exchange rate and the fixed minimum conversion price of A$0.005 will cease to apply”.

This seems to be the exact opposite of what you’re being asked to approve.

It then goes on to say:

“If these shareholder approvals are NOT obtained, the fixed exchange rate and fixed minimum conversion price will continue to apply to the Tranche A Convertible Notes, but the maturity date for the Tranche A Convertible Notes will be reduced to 6 months."

But isn’t this what you are being asked to approve?

This seems to go around in a circle on itself.