very short shortfall, page-5

Given the RI was fully underwritten by Patersons, they would have sub-underwriters in place to take up the short fall. The sub-underwriters would be Paterson's clients how would have agreed to the 7cent RI price, as such its not in Patersons interest to see the price drop.

Strong response to the RI, approx. 25% takeup. Given the size of the RI this is a good outcome.

Not sure if you've all noticed, the market has dropped over the last few days and most of last week.

LNC 21/4/11 - $2.92 now $2.68
CNX 29/4/11 - $0.31 now $0.29
LBY 29/4/11 - $0.13 now $.115

Other similar stocks following similar trend.

Still massive upside for CGV given projects and progress in US. CGV seem positive about India and their potential coal assets here in Australia.

Management were in NZ last week, possibly talking to L&M Energy who are looking to do UCG in New Zealand. L&M's site is next to the former Huntly UCG site where a successful trial was run in the mid 90's. L&M are listed on the NZSX and ASX.

The company seams to be in a very good position to capitalise on the last 9 months work they've put in given they had to put their Queensland UCG project on hold last July/August 2010 due to Cougar incident.

Also, don't be surprised if we something move in China as well. If you've ever done business in China, as I have, business in China is all about relationships and it takes time to build these. I still hold great hope for China.