Ann: Appendix 3B, page-15

Updated breakdown to include today's conversion. The last row shows the value of the issued shares (and options if exercised) as at todays close of 8.7c.


Summary so far:

Note 1 is now fully converted, note 2 partially converted, and note 3 is still outstanding.

MUS has received a total of: $5.95mil
for notes issued to the value of: $7mil

Note holder has converted: $2.7mil
and received 52mil shares
worth (at current SP): $6.9mil
plus 52mil options
if exercised, worth (at current SP): $4.5mil

If the options are exercised
MUS will receive an additional $3.96mil

The note holder still holds unconverted notes to the value of: $4.3mil






Note 1 to 3 have now been issued (note 4 has not been issued, but does have shareholder approval to be issued if required)

Notes 1, 3 and 4 include options.

Price and number of note 1's options ('A options'), were specified in the CN conditions, but the 'B options' associated with notes 3 and 4 are calculated when the note is issued. So far, only the B options for note 3 have been issued. More B options will be issued if note 4 is issued.

The number of options, and the strike price for 'B options' is calculated using the closing price the day before the note is issued. In the case of the 'B options' for note 3, the 13.3mil options at 11.7c imply a close price of 9c. This means note 3 must have been issued on Monday 11th Sept, as this is the only day we have closed at 9c. (If they were issued on Friday 15th when the relevant 3B was published, it would have been based on Thursdays close of 9.6c. This would have resulted in 12.5mil options at 12.5c strike price)

Also relevant to the CN are the options issued to corporate advisors. I have not included these in the breakdown