Ann: Quarterly Activities Report and Appendix 5B, page-22

A friend of mine who invests a lot in the market and has been in this for some time asked me to have a look at it.

I feel bad for holders firstly IMO the recent management changes are a sign that the "rats have deserted the ship".

Second, the company recently raised just under $2m and there's only $800k left.

Third , there's $15m of a $20m debt facility that has already been drawn down. I would imagine the update today speaking about the government permitting issues may trigger a debt covenant but I don't know as of course I haven't seen the agreement but I imagine at the very least it would prevent any further draw downs.

Fourth, the partner has walked away.

And lastly looking at Phil Stavely's contract he's due a 12 month notice period which effectively makes the company insolvent as of today.

IMO this is an absolute train wreck of the highest order and for the life of me I don't understand why anyone would hold shares in this company. At least my friend sold today.


WW