Ann: Appendix 4C - quarterly, page-11

Personally,I think it is not unrealistic to see a lot more revenue in the not to distant future.

Quarterly states in the report that the additional $2.75m capital expenditure was for upgrades toplant and technologies optimizing the quality of product at Peak and that the plantis now operational - Assuming there are no problems as soon as the licenseapproval comes back we will start manufacturing product as per our productionagreement with Collective Project limited. $$$$. The additional $2.75m hasinflated the spending for the quarter however it also notes capital exp will bereduced to $1.6m in the coming quarter which in addition to operation costs of$1.6m the forecast cash burn will be around $3.2m leaving us with around 3 quartersof cash at the current burn rate ($10.4m cash on hand). Although under budget of the original forecast I wouldn’t imagine the capital expenditure will continue to be such an expense as the plant is now operational and spending will only be for tuning up the operation. Something else to note is this pricing excludes any potential growth in Australian sales due to the new Telehealth option and our other interests overseas.

Excludingthe Capital Expenditure and the addition of the Peak income + continued domesticgrowth will hopefully result in us seeing a lot more green. (Although I amunaware of any forecasts re Peak revenue)

I’m quiteoptimistic on AGH’s future so I may be a bit biased, comments on the above wouldbe appreciated. Interesting times ahead IMO

Cheers