Ann: Appendix 3B , page-7

I agree with you mal. I am holding clu and was well aware of the situation as i have spoken to Simon few times. Since the placement there has been some upset investors. Here is my take on it.

1, Placement to a broker to distribute shares is going to be faster then offering to existing shareholders as not all shareholders would take up the offer so where does that leave the company.

2, Placement of 20 million shares is not a huge amount in my book as I have seen some company's do a placement of 100,000 million shares.

3, Placement at time of share price. There is know doubt the company and the broker (Bell potter) would have come to an agreement of 6 cents at the time when share price was close to that as it was needed to be within 15% taken from 5 day average. I think it just a bit of coincidence share price traded up 8 cents just prior to placement announcement.

4, As a director your dammed if you do and dammed if you don't

As I said just my take on it.