4th quarter activities report, page-10

Hi Lassetter,

The December 06 quarterly report states a US$20 million facility with US$6.4 million drawn. The March 07 quarterly states the same thing. The June 07 quarterly then says US$7.4 million with US$6 million drawn down. The limit was reduced in the June quarter with no mention of it to the marketplace.

As you state the reduction of the limit is a material matter and severely hampers there growth ambitions. No explanation for it has been given.

I have not rung the company. The report says amount available $7.4 million and then it says amount drawn $6.14 million.

I am an unhappy convertible note holder but unfortunately I am stuck there until the end of June.