Ann: Preliminary Final Report, page-34

I think you should take more consideration of the points made by posters who are critical...just because we may post things which reflect poorly on the company does not mean we are looking to rub salt into anyone’s wounds but rather highlight issues which would be of concern to us if we were holders in the company.

The harsh reality is that this company’s financial position is in dire straits and they are struggling to stay afloat. The honeymoon period is over for management and the broader market no longer
trusts their ability to deliver on promises.

They have yet to raise the remaining $2.5m of convertible notes and the amount raised so far has been from major shareholders to whom they are paying a very high interest rate and whom have been granted security over the company’s assets, which should be a massive red-flag to holders as shows that the investors lending money to the company have concerns over being repaid. Companies whom the market/investors trust don’t need to pay interest on equity and don’t need to grant security over the company’s assets.

The company is now running on borrowed money and borrowed time and promises of increased sales and exploration results is imo too little too late, and partly a smokescreen to distract from poor performance.

Rejoicing that this company is ‘operational’ and posting links to articles doesn’t detract from the fact that companies exist to make profits and that there is only so long that investors will keep injecting capital into loss-making businesses until they pull the plug.

The unfortunate reality for holders of this company is that there is real risk that the company will be placed into administration if the company can’t make a significant improvements in its financial affairs in the next 12 months, in which case your shares will likely end up being (close to or) worthless. I dont wish this fate on holders however I have less sympathy for management who have time to go on shareholder funded working holidays to Noosa, but don’t have time to double-check the basic layout of their ASX reports are correct!