Ann: Change of Director's Interest Notice, page-53

Sabine,

The cap raise was successful, from the company's point of view, in that it raised twice the amount of money that they actually needed at a price that now looks very attractive.

I believe it was the attached options that convinced a number of investors to take up the offer.

If you look back at the posts at the time prior to the cap raise, you will see my criticism of the original efforts for a cap raise & saying that they need to attach the options to the rights. I had spoken to both Steve Forman & Bryant Mclarty & made the point of needing to attach the options to the rights.

Eventually my advice was taken & the rights issue with options attached came into being & the money was raised including nearly $29,000 of mine.

If that cap raise was not successful SMN would now have financial problems. I now believe that the company, through AEM has the opportunity to have positive cash flows & actually be making money. Once the market sees a net profit, the share price should be well supported.