Ann: Amendment of the Heads of Agreement with Sum, page-6

re: Ann: Amendment of the Heads of Agreement ... Suggest that MDX shareholders join the dots on what looks to be some interesting goings on that have lead to the EGM.

On 21/2/12 company announces a placement of 17.5m shares at a very interesting price of 10 cents to sophisticated shareholders including 10m to substantial shareholder LAP Exploration Pte who increase their holding to 16.98% The placement to take place on 28/2/2012. The same day as settlement of the placement shares (28/2/2012) the Company calls a trading halt.

On 1 March 2012 (two days after the placement and trading halt) the Company announces that it has entered into an HOA with Sumitomo which provides that Sumitomo will undertake two months DD and for the privilege of doing so, will pay $2m in two tranches monthly in advance for undertaking DD.

As at 31/12/2011 company had $3.2m in cash so does not appear that it urgently needed money especially as within 2 days of the placement it announces a fantastic deal where it potentially gets $2m in 60 days for effectively nothing. No dilution to shareholders, no asset sale, just letting Sumitomo conduct due diligence. So why do it and dilute down the other shareholders by 10%? I wonder why?

Mr Tsang and his associates could not participate in the placement as he is a director and would require shareholder approval, which of course means he is diluted. What must also really galling him is that in August 2011, in the middle of the extreme European debt crisis uncertainty his family who had partially underwritten the rights issue, had to write a cheque for $2.7m when there was a big shortfall and these shares were at $0.25 cents not the 10 cent issue placed two days before the announcement of the "cash for nothing" Sumitomo deal.

Suggest that this matter has some way to run and that as usual the lawyers will be in for a fee feast.

If it gets into a control fight though it might help the price.