Ann: Funding Solution Secured for Project Development Costs, page-28

The deal is in the same ball park as the transformational CR. It is a better deal for RRE than it is for HHR. If we should chose between a CR dilution or a divestment like this one it is a matter of temperament if a smaller stake is better than more shares. I will always agree with you that having 20% of a success is better than 100% of a failure. Sure it de-risks. However that fact remains we get a smaller and smaller stake and it seems quite clear HHR had no other choice than take the offer from RRE. Similar to the transformational CR HHR had no other choice. Listening to Chris Lewis talking about numerous options for financing has proven hollow and misguiding once again.

Now the question is how shareholders capitalise on this. For phase 1 we look at maximum evaluation at first gas e.g. mid 2025. Depending on level of optimism SP between 7 - 22 cent. The latter in line with HHR management sense of realism.

My concern is HHR will use the proceed from Phase 1 to advance new licenses in parallel to phase 2 and 3 absorbing all income to exploration. Whether the proceed will be production or be being taken over 100% is yet to be seen.

Lets get a take over. The sooner the better.