Ann: Response to ASX Query - Appendix 4C , page-7

I really like this company but I can see why people are throwing stones at it right now.
Spoke to one of the major shareholders today who didnt seem fazed at all.
He reckoned the product was evolving fast with a higher sustainability factor and lower costs, believed the next 4C would show an improvement in sales ( although couldnt be categoric on this).
Said that there would likely be a small cap raising but not under 5 cents.
He pointed out that ECQ had spent approx $8 million to prove up a world market for a product with a potential commercial application in the hundreds of millions of dollars and thats before acquistions.
He was however concerned that the aussie market , primarily resource driven hadnt recognised the achivements or potential of the company but that was also partly to do with the bad start the company had which this board had now fixed.The company was looking to list on a new exchange with a greater investor following for green stocks and that these negotiations were underway.
Reckoned that 5 cents was a 'buy' not ' a disaster' and that people who bought now would make money, and said the major shareholders pockets were deep enough and belief was strong enough for this to go to the next major European roll out and then the US.
Buying would come as soon as the sales evidence and further global market acceptance became apparent..i.e real soon.
Of course I've always seen this as a long term investement, so I'm in whatever happens.
SV