Ann: Appendix 5B - Query & Response , page-7

Kos, I understand your concerns.

As Sag says, it could be new investors.

The last quarterly refers to discussions with international steel makers. Maybe MT is looking at another BHP or Kronos style placement/investment.

They may have been talking to a broker for support or
another type of investor like an into.

If all of the above are zip and they are only referring to shareholders then I make these points.

A private placement is not a public offering which requires a large amount of money, a prospectus and very time consuming.

Placements are delicate.

A company doing a placement wishes to achieve a price as high as possible. As a general rule unless it is one of the situations as noted above the price will be at market or as close to. As a general rule Mum and dad investors will not pay above market.

If everyone knows there is a placement and the price the shares are to be issued at then you can bet your bottom dollar that sellers will come in hoping to pick shares up on market cheaper hence pushing the sp down resulting in those participating in the placement withdrawing. The company will have to then reduce the placement price again to keep them in watering down our equity further.

In the case of APG most placements have been done pretty close to or at market and occasionally above market. Certainly not at a price to entice people to herd in.

The discount if any is only suitable for traders and companies like APG do not particularly want traders to be part of a placement as the stock gets flicked out for a 5% gain post placement again pushing the price down.

A company ideally wants an investor who are going to hold the stock and support the company.

While many say why wasn't I told, why wasn't I offered... the reality is that 99% of them would say NO at crunch time as they do not want to part with their hard earned $$$$. If they wanted stock they would have already bought it on market.

Without doubt some companies have does placements at huge discounts but APG certainly is not one of them.

I know how hard most companies work to get a placement done at a price as high as possible and as quickly as possible.



Cheers