Ann: Ceasing to be a substantial holder, page-15

If the selling is still coming from Regal / Bank or America as I suspect it is - then I am very happy with that.

The reasons why I am happy is that firstly, there is still plenty of buying demand at these prices.

The other reason that I am happy is that there would always be a dark cloud hanging over the share price while Regal is on the share register. We know that they held less than 46 million as of Friday. There has been over 5 million traded on ASX each of Monday and Tuesday and so far around 8 million today. So I am hoping that when the Top 20 is posted for 31 May that it shows that there is less than 20 million held by Merrill Lynch (not they may also hold some via HSBC or JP Morgan). That will confirm the expectation that Regal are exiting HIO.

I acknowledge that Regal and BoA exiting HIO may not result in the share price increase (although the removal of that selling and the dark cloud could have a positive impact on price).

I acknowledge that there is unlikely to be any substantial improvement in price until management release some news (and the silence has been deadening lately). However, I would rather have Regal out when any news is released.

For those who have concerns about Regal being involved with HIO again in the future, I highly doubt this. Please have a look at the CV of the recently appointed director, Jeremy Kirkwood. I believe that there were reasons why he was appointed. One of those is his corporate finance background ("Former principal of Pilot Advisory Group and Managing Director with Credit Suisse, Morgan Stanley and Austock") and the knowledge, experience and connections that comes with that. Jeremy Kirkwood does not seem to me like someone who would go back to Regal again (or even in the first place).

Once Regal are out this time, I believe it will be last time that they are on the share register of HIO.