Ann: Appendix 4C - quarterly , page-6

Well, Captain:

Preliminary Final Report just strings us along:

"As the Chairman said in the June 2012 Shareholder Newsletter, Egypt continues to challenge the Company because of the prolonged unsettled political environment and consequently the social and economic climate, that has caused some uncertainty and slowed the decision making processes of government and business. The Board is of the
view that patience and persistence are required and remains confident of the future for the Papyrus Egypt project."

"The Yellow Pallet project is supported in various ways by a number of governmental, institutional and private companies in Europe. The most recent activity of the project team is the preparation of a comprehensive
business case to take to identified funding institutions".

"The completion of 2 new veneering machines has been put on hold until such time as sufficient funding arrangements are in place from Egypt."

"Work continued during the period making minor enhancements to the Beta Veneering and the Fibre Production
Units and producing sample batches of fibre forwarded for testing in Egypt, Germany and the Netherlands."

"In July 2012 the Managing Director travelled to Egypt and Europe to progress the development of Papyrus Egypt and to advance the business of Yellow Pallet. He was joined by the Chairman in Egypt in late July 2012. The Managing Director remained in Egypt until mid August. The Company will announce any material developments from Egypt/Europe as matters progress and as required."

"as matters progress"------ we should be so lucky!!!!!

Meanwhile only 366k cash at June 30, and a cash burn of $2 milion per annum

Yawn------ you work it out!

Signed - burned ex-true believer.