time for a renounceable rights offer!, page-2

Bernard,

A couple of points of clarity here. First off Al Farida has only had, I guess, $4m of the potential $10m drawn down. No doubt they will be happy, should they convert the shares they could, with their $8m profit. I cannot for the life of me work out where your $40m gain number comes from. Good luck to them I say. When they put their hand up Australian Instos wouldn't give you enough for a trip to Starbucks. I'm sure QHL couldn't have raised $10m in a rights issue either as the say, 3,000 or so shareholders were all in financial meltdown.

Times move on. Now we have the deals that making finding cash 10 or even 100x easier. I strongly suspect what we have seen over the last 2 weeks is a prelude to capital being raised, exactly as you suggested a while ago. At the time I doubted it, but with the project finance needing finding and the recent market capping, I think your well on the mark now.

History tells us that QHL does a placement and supports it with an SPP. This is the opportunity for holders to buy another $15k of stock and I suspect your 50c number will be close to the mark considering that when I checked the VWAP since the first announcement, it's about 57ish.

Should a placement and an SPP be done then the dilution will probably be little different to what would have been done with Al Farida, but if it's at the 50c number we get 2.5 times the bang for our stock. That has to put a smile on every holder's face.

I am one of your favoured few original shareholders but there were only about 100 or so of us pre-IPO if I remember correctly. Most of those shareholders would confirm that now is the time for all shareholders to be treated with respect. A placement at the best but most realistic number is what we would want and an SPP at the same price so that every supporting holder gets a chance to double dip irrelevant of whether they bought their stock in 2001 or last Friday. I should point out that all but a couple of those investors from the early days can sell their stock any day they choose. The biggest shareholder (who is represented by a board memeber) is restricted to selling when the board dictates they are free to do so, but can do so should they wish on market or in a cross placement. We don't need a Rudd style handout.

Call me old fashioned but the shareholders in this company have been long-term in the main, long-suffering at times but always positive. These people deserve the best treatment and respect that their investment entitles them to. They own the company and the Directors run it on our behalf. I'm sure tomorrow's AGM will be a positive event and maybe the chance for us to dig out some more facts about our stellar future.

Any company that gets its first contract with a value of $700m from one of the finest defence companies in the World, on a U$300 Billion project (biggest ever) with support from the Australian Government deserves a pat on the back for being forward thinking and bold.

Must be Sunday so apologies for the sermon.

CD