Ann: Rights Issue Shortfall Notice, page-115

Complacency and puppetry from leading management.

The hard work was done over a few years, unfortunately they became sloppy at the pointy end - the drilling programme. Phase 1 of exploration was outstanding and the risk for reward was extremely favourable.

And your point exactly, which I’ve expressed previously: I was happy to risk not finding commercial O&G but never factored (and not happy to) that incompletion would see my investment fail.

We cannot confidently say that shareholders placed further stress on their investment. That’s definitely not fair. Firstly, the rights issue was poor. Secondly, it should never have come to us. Since late last year, when they decided/pushed into purchasing extra % in the project, they were well aware that cash would be thin. Right there is a management error. They rode for luck in hope Well 2 would be the saviour and secure funding post their success. What about the foresight? Get on the front foot and be proactive in the project security. That was their responsibility, not ours. They’ve been entrusted with millions and failed on multiple occasions. It is easy to sit here from a computer and point fingers, but how is that different to what management are doing?

I won’t go any further but them foregoing salaries in return for shares under same spp conditions - ridiculous. How about putting a PIP condition on that - if they cannot secure funding within that three month period, they forego salary.

There are funding options. CR was about number 10 on the list. It’s 4.5 mill - I honestly could dig that up with a few phone calls to people in a couple of weeks. It’s the negotiating that is failing. We don’t have the high card, so I don’t know why it’s being played that way. I’m actually just frustrated.