Ann: Quarterly Activities Report , page-9

Hi illiquid

I hope you are not too frustrated with these people who respond to your post, without acutally reading it. I too looked at the cash in bank and did the maths on the burn rate (which will pick up) over the next couple of quarters. It would seem evident that they either will have to start using some of the line of credit (50mio) or look at a capital raising of some kind. I would suggest given current trading they will not see the PENO options converted and hence probably cannot rely on this injection at 30 June unless there are some major JORC-related announcements BEFORE then.

I certainly can't see any off-take/partnerships on the horizon before JORC and therefore its one of the two possibilities I mentioned. One would think this is the reason they got the 50mio ready in the first place. There is also the possibility that they can arrange other finance during this time should they be able to gain access to better/cheaper credit.

If the SP is a good deal above 10c and all the holders of PENO convert they will have a little over $10.5mio coming into the coffers. Obviously we all hope this is the case and not the alternative.

Time will tell.

Rookie