Ann: Appendix 3Y JOHN WELBORN, page-25

This was the disclosure on Monday 21/8.

"Mr Welborn holds 2,100,000 fully paid ordinary Resolute shares the majority of which are held via CHESS. In February 2017, Mr Welborn received a CHESS Holding Statement showing a "Movement of Securities due to Purchase Sale or Transfer" of 1,218,522 fully paid ordinary Resolute shares off his CHESS account. This was an unauthorised transaction. Mr Welborn was advised by his broker that these securities have been transferred into a “House” account and remain beneficially held by Mr Welborn. Mr Welborn is undertaking investigations to confirm he is the owner (beneficially or otherwise) of these 1,218,522 Resolute shares. Pending the outcome of current investigations a further Appendix 3Y will be lodged if required."

Mr Welborn should have seen the movement of the securities from his account in February if he reads his mail.

Only two possible scenarios that I can think of.

1) He didn't read his mail in February and this all only came to light just recently when he finally noticed the shares were missing from his account.

2) He did read his mail in February...........hmmm. Won't say more.

One conclusive fact from this current announcement is he doesn't own the shares anymore.

So if they were transferred without authorisation as his previous disclosure states and they now no longer belong to him as his current discloser states, who received the money for the sale of those shares and where is the money now?

Eshmun