Ann: 09.10.19 GSA Exercises Pre-emptive Rights EP, page-7

re: Ann: 09.10.19 GSA Exercises Pre-emptive R... Goldenpig,

Despite the comments at the end of this release that it is unrelated to the current dispute with PXA, I think it indicates that there are lots of things going on in the background that we are unaware of - we just see the results through announcements.

GSG, which is owned 70/30 by EIR and PXA (and therefore effectively controlled by EIR) has now decided to exercise its pre-emptive rights to farm-in to the 25% that was going to be farmed-in to by EIR alone. EIR is going to use some of PXA's money to buy the 25% that it was going to pay for fully itself. EIR has forced PXA to commit to 30% of the full costs of the farmin arrangement ($3m of seismic plus three wells at say minimum $2m each) or somewhere in the order of $3m as PXA's share of costs.

There take that!!!

Cheers

Badfish