agm questions, page-48

Thanks Guys for the feedback. Very much appreciated.

From reading everyone's point of view of what came out of the AGM, there is one concerning point for which needs to be addressed, for the sake of understanding risk vs. reward.

The investor update along with the discussions with management has reinforced the importance that Block 105 success is paramount in keeping the share price in a solid upward movement. Failure will be catastrophic with the large holders, and will have a serious detrimental effect on the current uptrend of Neon’s share price.

The reason I believe the share price will fall significantly is due to the fact that all the bets now hinge on the final outcome in Block 120. Once you remove the safety net, the wall breaks, it’s every man for himself.

These are the decisions that we all must make, which is why I am highlighting that Block 105 is 10 times more important than Block 120.

For management to be emphasizing Block 120 at the AGM is all and good, but the main focus should be Block 105. This is the first block that is being drilled; this is got to be the main focus. Its one thing to say that Block 120 looks very promising, but to deflect the importance away from block 105 makes no business sense.

This is my view of proceedings: Block 105 – Success with wireline logs indicating gas bearing sands will have a massive outcome on keeping the share price in an uptrend leading to late August drilling of Block 120. Any other news contrary to this will have a detrimental effect on the share price, with massive sell off of up to 50% of its then current value.

Block 105 should be everyone’s main focus. For those that are selling out now is because they probably want to see some success first with the first well. It gives them clarity moving forward, onto the second well in drilling block 120.

It removes the gambling Risk vs. Reward scenario from the more conservative shareholders.

Good Luck