Ann: Strategic Investor Exercises Options Followi, page-2

re: Ann: Strategic Investor Exercises Options... Interesting move by HP. Why exercise options early, I think these options have a 30 August 2013 expiry?

Could be to:

- Sell the converted shares. Unlikely IMO they have over 100m FPO shares they could sell if they want to. Least likely, again IMO

- Increase voting power / blocking stake? - could CPL be subject to an unwanted offer? Again probably not very likely, I would have thought HP already have enough to dictate terms here.

- Increase cash for the company. I would say the most likely reason, end of Q cash balance was $23m, the HP topup to $35m could allow the company to stay on production schedule whilst buying sufficient time to negotiate development funding. Interesting also that Gene mentions detailed engineering and completion of the regulatory approval process as the next stage of development...no mention of offtake / funding agreement, is this fait accompli? or just going to take longer than anticipated?


All IMHO only


Good luck to holders.