a true reflection on management

A Finance Services Agreement has been entered into with Gardean Pty Ltd which includes the
issue of 2 million Shares at $0.50 each for total consideration of $1million to be issued within
3 days of the Company being listed on the Australian Stock Exchange. The payment for the
shares is an initial deposit of $10,000 with the balance of $990,000 to be paid on or before 30
August 2007, subject to a clause in the agreement allowing an extension of the date for
payment of $900,000 of the balance of subscription monies to 28 February 2008. The
company has been provided with a list of assets and liabilities of the party guaranteeing this
payment. There has however been no specific security provided to guarantee payment.
There is a risk this balance of payment will not be received and the amount of $990,000 may
be required to be fully provided against.