Ann: Prospectus CitiView Corporation Limited , page-4

ASIC is all over them.
ASIC is making sure that anyone who takes up this offer KNOWS THE TRUTH as much as possible.


Fortitude Investment and Receivable
If the Fortitude Receivable is assigned from CityView to a third party, as is contemplated by the Velvogen Agreement, Fortitude could be wound up or may not be able to operate as a going concern if it cannot repay the Fortitude Receivable if and when demanded. (refer to the
section of this Prospectus entitled Fortitude Investment and Fortitude Receivable - Fortitude
Receivable).

The Board considers that it is commercially likely that the Fortitude Receivable will end up being converted into Fortitude shares. If Fortitude cannot repay the Fortitude
Receivable CityView’s investment in Fortitude could be lost (if Fortitude is wound up) or heavily diluted if the Fortitude Receivable is converted into Fortitude shares.

If neither of these occurs then the first US$10,172,807 of any profits or equity raisings of Fortitude could be expected to be applied to satisfaction of the Fortitude Receivable (note that the Fortitude Investment and Fortitude Receivable have been fully impaired in the Company’s financial accounts).


Velvogen Risks
The Company presently intends to proceed with settlement of the Velvogen Agreement and it will be reliant on Metro and Velvogen to comply with their obligations under that agreement to ensure that such settlement does proceed in accordance with expectations.
In addition, there are also technical risks associated with the technology that Velvogen intends to use in the manufacture of coal briquettes. The Board understands that the technology is subject to further testwork and has never been proved viable on a commercial scale (note that the Company does not presently hold any interest in Velvogen and if it does acquire an interest, it should be assumed that interest will be fully impaired in the Company’s financial accounts).