Ann: Market Update , page-2

A market update but still rather confusing. It cites a delay based on the difficult transition process in change of management as well as the material transaction that is completing.

The major management change took place in November, followed by more changes in late December. The original changes obviously required a supplementary prospectus. The subsequent ones will require one too. One would think that the time since ASIC stopped the prospectus has been adequate to ensure a detailed amendment of the document. Not to mention that it has been since November that the majority of the changes were made.

But more importantly, i'm not sure what the material transaction has to do with the delay. The transaction cannot proceed unless and until the capital raising goes ahead which obvioulsy requires a prospectus that meets with ASIC requirements. The transaction has been negotiated, the terms are included in the previous prospectus. Are they suggesting that there will be further changes to the terms? I dont get it. All matters to do with the transaction should be on the backburner until the prospectus is finalised.

One of the biggest issues i think they will face is how ASIC deals with the potential conflict of a related party transaction, if the article in the fairfax press is correct, ie Madam Cheung holding a directorship in both FMJ and Ji'an Resources.