Ann: Hawsons secures A$ 200m equity funding package, page-197

Let me clear a few things here. I did talk to Glenn Vassallo from HIO today to clear my understanding regarding the 71.5mil options.

- In 1 year anniversary they will determine the excercise price for those 71.5mil options:

1. If 30 days VWAP is 55c or higher, then excercise price will be 70c.

2. If 30 days VWAP at that point in time is less than 55c, then excercise price will be 125% of sp.

- LDA Capital has 4 years from that date to excercise their options if they choose to do so.

From today to that day to determine the excercise price for those 71.5mil options, HIO will have resource upgrade, EIS submited and environmental permit approved, pilot plant completed, more financing deals, off-take agreements, and whole lot of other news/updates. Off-take agreements will take sp way above $1 and possibly above $2. So, the excercise price for those options IMO will definitely be 70c.

If LDA take the options with excercise price of 70c, they will pay HIO $50mil. If they do so, they must expect sp to increase to multiples of 70c. You don't excercise your options at 70c just to expect sp to be $1 or $1.50.

Regarding Regal Funds if it was the one behind today sp manipulation, let me say this: if they were to genuinely exit HIO, they would have sold their shares at highest price as possible. They would have tried to sell their shares at 22c, 21c. They would not want to push sp down to 13c. They are not stupid. They can manage to push fake buy orders so that they can sell as much as possible at 22c, 21c. The only reason they pushed it down to 13c is to buy back more than they sold in the days ahead. Many naive short term holders will be victims but not the long term holders and believers of HIO. I say again, if Regal was genuine seller to exit HIO, they would try to sell as high as possible today by stacking up the buy order side.

We don't know 100% sure whether it was Regal. It could be 1 or 2 major investors/institutions who want to buy in by manipulating sp down before they can buy up in the days and weeks ahead.

But remember they could end up working for nothing because there could be some bigger fishes waiting for the right time to buy before Regal plans to buy back. The market is full of predator. Regal could end up falling into the trap set up and waited by other big players.

The only losers will be the ones who have no analytical capability to see the good news today and/or no faith or belief in this great stock.

Merry Christmas.