issue of 201 million shares at 25 cents/ share, page-26

J.L

I took the time to make contact with HGO direct and was assured that finance for K was not an issue.

HGO ASX announcements (when we got them) were never clear and at times misleading. Statements made to the press (Adelaide times)were always positive and at no time did the Directors come out and say there was an issue.

I get what you are saying as hindsight is a wonderful thing. It is just that HGO seemed that they were playing a strategy that suggested they were on top of their game. It would appear now that the only finance they could access is the type that shafts existing holders.