Ann: Appendix 4C - quarterly, page-11

Yeah overall very disappointing particularly considering this includes initial sales of a new product line . Whilst the drop in sales is small that's two quarters in a row that sales have dropped. It appears the standard Alexicool product has reached its maximum exposure to marketshare and competition is pushing its revenue capacity down. Reliance is now heavily focused on these new product lines. It makes total sense now why the company was so desperate to end the old loan facility, it was totally maxxed out. Wish they were clear on this from the start, it's a bit contrary to my conversation with Wise where he said it was because it falls within the next 12 months the auditors encouraged them to take care of it sooner than later. And also the claim that the company was still on track to be EBITDA neutral by the end of the year. The further bad news is that manufacturing costs are down again on the previous quarter. This is a leading signal and likely indicates another quarter of lower cash receipts for January March quarter. Which based on history indicates another US$1mill cash on hand drop. We really are at the pointy end of the stick here. Goal posts have moved again. Another 6 to 9 months to see positive EBITDA IF new product lines do well. Share price will be hit hard I think.