quarterly report out, page-2

here is the first few pages


25 October 2010
Transol Corporation Limited
Quarterly Report to 30 September 2010
The Director?s of Transol Corporation Limited (?Transol? or ?the Company?) present their
quarterly report for the period ended 30 September 2010.
Valleyarm Digital Pty Ltd (80% owned subsidiary)
Emerging from a collective of music industry experts, Valleyarm is positioned as Asia
Pacific?s leading digital distributor, publisher and marketer of independent music and
video content, along with representation in southern and eastern Africa.
During the quarter, Valleyarm entered into a number of agreements to add significant
weight to Valleyarm?s position as the leader in South East Asia?s digital music landscape
and strengthen its ?Asia-Out? ?Asia-In? model to monetise Asian content.
Indonesia
Valleyarm entered into an agreement for digital distribution with PT Musica Studios,
Indonesia?s leading local music company.
The agreement will give Valleyarm access to Musica?s unrivalled catalogue and 55% market
share of Indonesian music content, including Indonesia?s highest ever selling artists -
Chrisye and Peterpan. The Musica catalogue will be distributed by Valleyarm globally
through ITunes, Amazon and Myspace Music, and is expected to significantly increase the
Valleyarm?s revenue and earning potential.
PT Musica Studio?s was founded by the late Yamin Widjaja in 1968 as Metropolitan Studio,
and by October 1971 Metropolitan Records was re-named Musica Studios. From the 1960?s
until today, Musica?s artist and repertoire includes the biggest names in the Indonesian
music industry such as Chrisye, Iwan Fals, Java Jive, Kahitna, Trio Libels, Nike Ardila,
Peterpan, Project Pop, Nidji, Letto, d?Masiv and many more. Highlights of the catalogue
include Chrisye, still considered the biggest pop solo artist in Indonesia and Peterpan,
Indonesias highest all time selling artist.
Malaysia
Valleyarm entered into a Territorial Partnership Agreement with Live Music Group
Productions (?LMGP?) for representation in Malaysia.
LMGP will aggregate the digital rights of Malaysian music and video content on behalf of
Valleyarm within Malaysia and act as a local representative and account manager for the
Valleyarm catalogue.
This agreement strengthens Valleyarm?s position as the leading South East Asian digital
video and music content company, enabling Valleyarm to drive revenues of digital sales
within Malaysia as well as selling Malaysian content via Valleyarm?s global distribution
platform.
LMGP is a leading artist management and touring company in South East Asia. Based in
Melaka, Malaysia, the company has a strong relationship base within the music industry in
Malaysia and have worked with many well known regional artists and labels.
Australia
Valleyarm entered into a digital music content agreement with Telstra Bigpond,
Australia?s largest internet service provider.
The Agreement considerably expands the potential audience for Valleyarm?s music
catalogue by making it available for sale through Bigpond Music, Australia?s leading online
music store; and is expected to significantly increase Valleyarm?s revenue and earning
potential.
Telstra BigPond is Australia's largest Internet service provider with one of the best known
brands in the country. Telstra offers a full range of products and services and compete in
all telecommunications markets throughout Australia, providing 9.2 million fixed line
services and 9.7 million mobile services. Telstra is one of Australia's top 10 listed
companies and are a Fortune 500 company.
Valleyarm now has the ability to represent its Asian publishing catalogues for the
collection of mechanical and public performance royalties in Australia and New Zealand.
At its recent board meeting, the Australasian Mechanical Copyright Owners Society
(AMCOS) and the Australasian Performing Right Association (APRA) elected to Valleyarm to
full APRA publisher membership and AMCOS membership.
Valleyarm can now act on behalf of its Asian publishing catalogues to clear, receive and
distribute royalties from synchronisation services and collection agencies in Australia and
New Zealand, further monetising the Company?s content in these territories.
The Australasian Mechanical Copyright Owners Society (AMCOS) collects and distributes
mechanical royalties for the reproduction of its member?s musical works. The Australasian
Performing Right Association (APRA) collects and distributes licence fees for the public
performance and communication of its member?s musical works in Australia and New
Zealand. AMCO and APRA are separate non profit organisations.
China
Valleyarm entered into a licensing agreement with Beijing R2G Music Limited, a leading
digital music distribution company in China, for mobile music distribution and licencing to
China?s first bilingual and largest digital music store Wawawa.
Valleyarm?s catalogue will be available on R2G?s Wawawa Music Store, the largest
independent music store in China, including distribution through China Mobile, China
Telecom, China Unicom as well as provincial platforms through over 150 supply partners.
This is an exciting opportunity for Valleyarm artists and labels as it significantly increases
the potential audience for their digital downloads, with over 500 million subscribers across
R2G?s mobile carriers.
R2G is the first centralised music distribution platform in China promoting the
consumption and monetisation of legitimate digital content through a transparent
licensing and monitoring system.
R2G also runs China?s largest online independent music store, Wawawa, which provides
independent music labels and artists with a platform in China to sell their music.
World-wide
Valleyarm entered into a Digital Music Distribution Agreement with Nokia Corporation, a
world leading mobile phone supplier.
The Agreement considerably expands the potential audience for Valleyarm?s music
catalogue by making it available to a range of Nokia phones and to personal computers
throughout the world via the Nokia Music Store Ovi, and is expected to significantly
increase Valleyarm?s revenue and earning potential.
Nokia Music Store is available throughout Australia, Finland, India, Malaysia, Norway,
Russia, Spain, United Arab Emirates, Austria, France, Ireland, Mexico, Poland, Singapore,
Sweden, United Kingdom, Brazil, Germany, Italy, Netherlands, Portugal, South Africa and
Switzerland.
South Africa
Valleyarm entered into a Territorial Partnership Agreement with Taumaturge Promotions
Pty Ltd (?Taumaturge Promotions?) for representation in South Africa.
Taumaturge Promotions will act as a conduit for Valleyarm in South Africa, as well as
Angola, Botswana, Democratic Republic of Congo, Lesotho, Madagascar, Malawi, Mauritius,
Mozambique, Namibia, Seychelles, Swaziland, Tanzania, Zambia and Zimbabwe, by
facilitating deals and acting as a local Valleyarm representative.
This Agreement expands Valleyarm?s content and distribution networks outside Asia to
now include a significant number of southern and eastern African countries and a
significant increase in potential customers.
CLTNet Pty Ltd (100% owned subsidiary) ? Computerised Theory Testing System
The Company has successfully completed all the deliverables required, in the first term of
its contract with the New Zealand Transport Agency (NZTA) for the provision of
computerized theory testing for driver licencing and education.
The Company is now working to secure a long term contract for the ongoing provision of
software licenses, online education services, software development and consulting
services to the NZTA. A contract is expected to be finalised in October 2010.
Quick-Links (Aust) Pty Ltd (70% owned subsidiary)
During the quarter, Quick-Links has continued to attract trial and paying users to its web
2.0 collaboration and project management platform from Australian customers.
The Company has engaged Hugh MacFarlane of Mathmarketing, an international B2B
marketing consultancy, to assist the Company in expanding its marketing activities
internationally and aggressively ramp up its customer acquisition activities and user
numbers.
Mathmarketing is assisting the Company to develop key customer market segments and
develop distribution channels internationally. Planning has been completed and a
customer acquisition program will start in October 2010.
Liberty Mining International Pty Ltd (100% owned subsidiary of Transol)
During the quarter Transol?s wholly owned subsidiary, Liberty Mining International Pty Ltd
(?Liberty?) was advised by its joint venture partner, Prairie Pacific Mining Corporation
(?Prairie?) that further results had been received from its exploration program in the
Ratanakiri Province, Cambodia.
Prairie has expended in excess of US$1.2 million on its exploration program and during the
quarter, Transol, through Liberty, entered into a variation on the formal Joint Venture
Agreement with Prairie.
The Variation allows Prairie to accelerate to 90% participation in the joint venture, and a
payment of US$575,000 was received by Transol on 23 September 2010. Transol maintains
a 10% free carry on all expenditure up until completion of a Bankable Feasibility Study on
any of the joint venture assets.
Transol sees the Variation as an encouraging step towards further exploring and
developing the Banlung and Oyadao projects in the province of Ratanakiri in north eastern
Cambodia, where Transol has previously defined a number of immediate drill targets and
other target areas that are highly prospective for gold and base metals.