announcement - capital raising, page-7

Dave,

I made a profit on the SPP - I sold at 6c before the SPP and bought the shares back at 5.5 through the SPP - and I know I'm not the only one that did that; At the same time I know that the company has a better chance of continuing because of the extra cash in the coffers.

It's not altruistic to make sure (as much as one can) that your investment doesn't run out of capital, it's pragmatic.

The SPP was over-subcribed. They wanted to raise $5.5Mln, they instead raised $7.1mln, then another $2.75Mln through the SI interest which caused our latest TH/Suspension.

The over-subscription wasn't complete - they could have sold up to 30%, which would have meant ~ $15Mln.

Every SPP CTP has had has seen shares being sold on the few days after on or around the issue price. A few people said they wouldn't take up the SPP because they could get the shares under the SPP price after the issue.

At the moment Buyers are outdoing Sellers 10:6, so it's not going to bad.

- Karl