Ann: Issue of Convertible Security and Appendix 3G, page-4

Hi CXM community,

This is an amazing little project. Low capex and easily fundable. No hurdles to production. Profitable even at low phopshate rock prices. Trading at less then half of NVP. great!

Can you assist with below query however?

Has this convertible security not f'ed the capital structure? if EEPL convert their security now that would be 45.5mil shares valued at $6.4mil (assuming 14cents/share).

Not only that but 45.5mil options will be available for EEPL valued at $4.1mil (assuming 9 cents per share)

So that's $10.5mil or roughly 12% of the Market Cap?!

Considering unpaid interest, the above numbers would be even higher! All for a measly $1mil convertible security!?

Even more confusingly EEPL is owned by Graham Chrisp. Is this not some kind of conflict of interest? Essentially shareholder cash is being funneled to Chrisp while Chrisp is on the CXM board? Please assist an ignoramus and enlighten or correct me.