Ann: Financing & Management Update, page-51

What can they do, apart from be very upset? The acreage agreement is legally binding, they have to live with what whl management does just as we do.

I spoke with Stuart Brown today. He told me the biggest concern was repayment of the $500k short term advance as deposit for an acquistion. If this has not been deposited, we can surely repay it. If it has been paid, we were told it was linked to funds to complete the purchase. Were we lied to? He mentioned secondarily the magna finance was concerning.

The $500k was approved in April. The magna deal in May. Mere weeks ago. Surely these went to the board for approval. So why has the board now changed its mind, and why are two of the three now telling us our best interest is to give away virtually all our equity?

What has changed in these weeks?

What other financing options were considered? Were large holders approached for a private placement for example. I know i wasn't.

Do they even have the right to enter this deal without approval from shareholders? It is immoral to sign us up to this without so much as a frank discussion of our situation as they saw it.