Ann: Quarterly Activities Report and Appendix 4C, page-255

Everyone speculated IDC was a no goer in the lead up to it being approved last April - then we got credit committee approval & more recently turned into a contract.

The reason for the CP is so they are sure we’ll have the sales to support repayments. I am sure they are working to satisfy the CP by what ever means - as we all know nothing happens quickly in Africa.

But even if it did fall over, the whole project is costing $24.7m (without expansion), we’ll have $10m from SWF, $12m from BAI, that’s a bit under $3m short. Yes we’ll need working Capital once the project is built & I’d suggest that $3m wouldn’t be needed till towards the end of construction. By then we’d have some sales contracts signed, a plant almost complete & a much healthier share price if we did decide to equity fund it. Also we’d probably have the option of increasing our loan from BAI - they were talking $15m to begin with. IDC will have a lien over our Plant, but if they fall over BAI would be able to use it as security.

But that’s a worst case scenario - I don’t expect that at all, just like IDC was first approved when we all gave up, one morning we’ll wake up with news the CP has been satisfied.