Ann: LDA Clarification Notice, page-10

I think taking a short position in HIO over the next 30 days could be a very dangerous or costly decision. I say this for the following reasons:

Whilst LDA might be a seller of shares, it will still want to make a profit. I have set out previously that I think HIO would have set the minimum price to be 40 cents (based on targeting $10 million and issuing 25 million shares). Therefore, LDA are unlikely to sell at or below 40 cents, otherwise they don't make money. Therefore, no selling pressure from LDA below 40 cents.

HIO seems to have been set 40 cents as a floor price, below which many are happy to top up and it hasn't stayed below 40 cents for very long.

But most importantly, we are expecting announcements on processing and resource which have the potential to shift the price up. Sell side seems very thin lately, often below 2 million shares on offer for sale. Therefore, could be hard to buy back shares at close to the current price if there is a spark of demand.

Therefore, much more upside than downside over the next 30 days in my opinion and a big risk of getting caught out if anyone was to short HIO.