Ann: 7-Fold increase in Permit & Sovereign Wealth Fund Agreement, page-108

I still think we should go it alone through a Renounable Rights issue. There has been plenty of time to organize one. It is the fairest way to raise capital for shareholders. And anyone unable to buy the Rights can sell them on the market. Anyone who wants to buy them can buy them. The beauty about a Renouncable Rights Issue is they are fair to shareholders at attractive prices. For instance, what would happen if the Rights were at 10cents per share - Every shareholder will want to take them up and if they could not they will sell them at about possibly 9 cents per share and the company will raise 100% of what they are asking. This is a win - win - win - loose outcome. Shareholders win, New shareholders taking up the Rights win, Invictus wins, as they will raise the funds easily, and possible Cluff loses -unless they take up some Rights. Cluff does not grab a large percentage of the company cheaply at the expense of shareholders taking up the Rights. Shareholders can maintain their proportion of the company if they take up the Rights. If there is any drop in the share price on this scenario, it does not really matter as Invictus gets the money for the drilling and the price will recover quickly.