agm, page-4

malcolm, based on the way I understood ME ..

re the 5 mil US. If FAR wished to move the lease agreement into the next committment stage, a 5 MIL deposit is paid up front - and lost if the holders of the lease fail to meet their committment.

I found the meeting's mood "flat". I have some concern in them hiring Envoi to distribute pamphlets. Hardly a resounding endorsement they are progressing well with current Senegal JV prospects. ME stated hiring Envoi was intended to put a "fire" under those showing and/or thinking of showing interest. So obviously negotiations are frustrating and not progressing at a full and satisfactory pace. ME also made comment that the shell agreement has become the indicator on what value can be obtained, which I read as everyone is tight-fisted on their offers. And I also assume - from these actions & comments - that it will be some time yet before a JV is announced.

On the positive side, they seemed to be more upbeat on GB than Senegal. I think Senegal has become hard, drawn-out work and FAR is almost out of their leage as it tries to cash in on their 90%. But GB has an oil find, less exploration / development costs etc. So this one might sit more comfortably within FAR's capabilities.

I managed to have a chat with Igor after the meeting. He showed confidence in the potential of both leases, and came across as all is going well, but this is just a part of the game that can be frustrating. I hope he's right.

In conclusion, as expected, the AGM was a non-event. FAR is trying within its best capability to secure a JV in Senegal, and to progress GB. I think they will succeed, but to what level of success & when .. that's the great unknown.