Ann: Hanlong Convertible Note Extension, page-31

Found this: Being part of the T&C of the Convertible Notes:

(h) Voluntary conversion on termination of scheme implementation agreement: if the SIA is terminated3:

the Company may at any time notify the holder that all of the Convertible Notes held by the holder (other than those redeemed or converted) will be converted on the date specified in the notice (but may only convert such amount that would ensure no breach of section 606 of the Corporations Act occurs); and o the holder may at any time notify the Company that it must convert a specified number of Convertible Notes (other than those redeemed or converted). Pursuant to the SIA Termination, Hanlong agreed not to issue such a notice until such time as the release event occurs. The release event will occur on the first to occur of the following:

 9am 1 May 2014;
 Hanlong notifying the Company it wishes to convert the Convertible Notes and sell the resultant Shares for the purpose of funding financier claims and/or demands made against a Hanlong party (being Hanlong, Hanlong Resources Limited or Sichuan or their related bodies corporate);
 the announcement of a transaction which, if completed, would result in a person acquiring voting power of not less than 50% of the issued Shares in the Company or a direct or indirect economic interest of not less than 50% of the Mbalam‐Nabeba Iron Ore Project; or
 the Company announces a proposal to cease quotation of its Shares on ASX.

My reading of this is that SDL has (had?) discretion whether to redeem or convert except in the case where the "release event" occurred.
The one and only q then to be asked is if, with the extension of Maturity Date, the release event date of 1 May 2014, had been changed to now be 31 December 2015. If answer is affirmative, then SDL is OK.- Then no threat from H/L to further dilute.