calling kiril, page-18

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As regards the c note its an unfortunate process but they would only go into default on 1 January 2011. Then someone would have to give notice of default. They would be able to have a period to settle and then it would be a case of if you push too hard the house falls down. They can practically roll this loan around for months IMO.

Personally I think that this is always the hardest period to conclude deals both in calendar year and in company position. Would I sign a deal when I am not sure the company has the financial resources to repay a note in less than 3 weeks. - The answer is NO. I respect Kiril's views and I hope it all turns around - However once they sell their shares in Mad Energy the cupboard is bare and we have no more assets to sell that wont damage our business if we do sell them.

I only hold a few and want to be an investor in this arena but I still cannot respect a management team that leaves it this late. They are playing with all your money.

I have had to have a hard look back at some of my lucky escapes over the past two years. This is one of them. The others are WFL got out with a profit, GNS small loss, and in reviewing the timber issues it just pointed out to me that its amazing how management can do bad things which we as shareholders condone. Imagine taking upfront money to look after an asset for 10 years and yet you dont segregate those funds from your general funds than you rely on next years sales to pay for this years costs on those trees you sold last year. Illogical in hindsight but it even got the better of Intelligent Investor. In hindsight its just plain wrong.

So should we be lauding management for not having A CR, IMO NO - They should have taken the bold route and asked shareholders for some cash about two months ago so that they can repay the loan and get to the end of June 2011. The price may have been brutal but I don't respect them for risking everything on a bank loan backed by a deal.They could issue 30million shares at 0.5c and raise $1,5million in one hit and no shareholder meeting required.

Only hold a few for CR purposes