price sensitive announcement, page-23

Rusty,

You are correct. I was going on these chunks from the Oct 11 announcement.

"The Variation now requires the Company to commence the manufacture of the second geo-thermal drill rig in approximately 18 months time."

"As soon as we have secured long term contracts for the first drill rig, we fully intend to recommence
manufacturing process again but for now we are able to completely focus on generating profits
rig without the financial pressures of a large manufacturing payroll and multiple premises."

I was interpeting two statements as (a) we dont have to build the second rig until April 2012 and (b) we wont unless we get a long term contract on the first rig.

Running the first rig solo for while may actually help build in improvements into the next rig - Microsoft call it beta testing.

I dont disregard the $258K saving, glad we are making the move for a whole range of reasons, just making the point there wasn't much in the announcement over and above what we were told to previously, so if someone was happy to invest after the announcement, they should have been just as happy to invest yesterday.

Cheers