Ann: Quarterly Activities Report, page-2

The part of this announcement relevant to Nende is now being discussed amongst Nende landowners, most of whom are still adamant in their opposition to this project by PBX. Nende landowning groups have approached the Solomon Islands Attorney General to assist in its defence against the case for review by the courts of the revocation of the Prospecting License and will furnish the AG offices with additional information concerning breaches of the acts by PB. It should also be noted by investors that while PBX was raising funds in the market for additional work in Nende one of their staff signed an MOU with the Temotu Provincial Government and anti mining groups that they would halt prospecting for 6 months because of land owners opposition. This MOU will also be made available to the AG office and the courts. Furthermore LO legal advisors note that there is no legal process that would allow PBX to pursue an out of court settlement "with the aim of expediting the reinstatement of the Prospecting Licence" PBX are, in the opinion of Nende landowners misleading the market as opposition by them to prospecting is almost 100% against. Statements in announcements to the ASX and on the PBX website are grossly misleading. I and the people I talk to have more knowledge than PBX about how the landowners feel about mining in Nende. If I were an investor i would sell my shares immediately.