Folks, part of this objection many shareholders have to this...

Folks,

part of this objection many shareholders have to this boards efforts, is the failure to engage or secure superior deals, which are out there, however as late as yesterday the board still refuse to look at genuine, tangible and available options.

Why would you not seek a 0.3 offer in August?

Why would you not be speaking with the below alternate now?

Why talk of funding crisis when you have access to several millions of dollars through bonds, R&D grants and sale of surplus assets?


Email to board yesterday morning (With some edits but full emails available, just email [email protected], info will be flowing from there to all shareholders as it is pulled together.

I encourage you to write to [email protected] and tell them what you think, also write to [email protected] and let the chairman know what you think about their performance. It is your money, your shares so have an opinion, does not have to be aligned with mine, in fact they would probably welcome a positive email, I don't think they get many!!!


Directors

Please be advised again, as you are fully aware the current board as we have communicated, has clearly lost the support of its ****** shareholder’s.

(TXT Re-removed for HotCopper Post)

In regard to the tangible funding options available to an alternate board, notwithstanding the several issues around needing to be company officers to finalize and endorse any such deals, and also the fact we believe the company is certainly in no means in an insolvent position, the following is outlined –

1) Shareholder options issue –

Whilst this option is available to the incumbent board, always has and still is, we would seek to put a equity raise / rights issue to existing shareholders, particularly since we believe there is a reasonable percentage of shareholders, based on ratio of existing ownership who would potentially participate. The fact that the stock has continued to trade at $0.002 and $0.003 suggest that there is reasonable grounds for believing that an equity placement somewhere between $0.001 and $0.003 should be possible. This would not have needed a onerous funding deal, break fees or outrageous up front allocation of shares on approval and it is something that should the incumbent board stand down in time, we would seek to do as a matter of urgency.


2) Re-Organisation of any potential offer from “Twinkle Woods”

Option A – Convert the loan at a rate acceptable to shareholders
Shares on issue 1,829,167,072
Twinkle Wood $1,000,000
Price to convert 0.0022
New Shares on Issue 2,283,604,335
Twinkle Wood 454,437,263
Twinkle Wood % of MRV 19.9%


Option B – Extent the loan for 2 months to allow the new board reasonable time to repay the loan.

Or a push out of the current funding with commitment to repay the balance of the genuine loan and that of the 12.5% interest however there would be no entertainment of a break fee of $250,000.00.

3) ******* Offer –

Being fully aware of the ******** offer, which both Andrew Purcell and Andrew Matheson spoke to me about, and also the fact that I had met with ********* in person prior to their offer to Cougar Energy Limited at the time, I have re-engaged with ********* who are highly supportive of continuing their pursuit to support Moreton Energy.

However as you are by now aware, they have suggested to me they will not support any funding arrangements that has the current board in place and they are willing to execute documents and final discussion as soon as competent company officers are in place, representing Moreton Resources. They have indicated there was some correspondence stating their disappointment about the incumbent board and their willingness to re-engage when a new board was in place.

You are aware this is a genuine offer and based upon your own accounts, the reason you rejected a 0.3 offer was your concern it was to be syndicated and you would not be able to control the selling on market. We have a differing view of that, as it seems all parties are in agreement the funds are possible, the selling or buying on market and the share price, we believe is just a reflection of the Board and Company potential, which we are happy to take responsibility for.

As you are aware the prior negotiations were based on considering a **** and ***** in two tranches as a discount to market average.

We believe there is high prospect and commitment from all parties to do a legitimate deal should we be in a position to do so, by the board standing down.

4) ****** ***** Management –

This funding source to which Moreton Resources / Cougar Energy is familiar, is willing to enter into agreements with a new board, however are not willing to enter into any arrangement that has the incumbent board in place. We have strong commitment through talks with ***** ***** ***** and we believe we have their support to move forward

We believe there is high prospect and commitment from all parties to do a legitimate deal should we be in a position to do so, by the board standing down.

5) ******** ******** Limited –

I am in possession of a Letter of Intent from ******** *****, a ******* ****** based investment firm who has committed to * million dollars equity at 20% reduction in VWAP, with a secondary 1 million post due diligence. In total that is a potential * million dollar investment in the company.

As you can appreciate that is a far superior offer than that of which the current board has been able to secure. This offer is of course subject to the immediate standing down of the board, which will allow a new board to begin to negotiate and finalize funding, which is why the first tranche of the offer has not been subject to due diligence.

This viable and very legitimate funding source, whom has recently backed ASX code (***) ****** ***** Mines Limited on July *, 2013 has a proven record and is willing to act as a matter of urgency.

I have in my possession a written LOI, however I have requested a alteration to the LOI and a revised copy is due Monday morning, which I am happy to provide.

We believe there is high prospect and commitment from all parties to do a legitimate deal should we be in a position to do so, by the board standing down.

6) Ergon Bond Return

Despite your stated distrust of Ergon Energy and your thinking that should you pursue the bond that will reduce the amount refundable, we would seek to make contact urgently with their CEO and Snr Legal Counsel to finalise the outstanding funds and have them remitted as a matter of urgency.

We believe if this was done by the Chairman, on the 5th of August 2013 as requested by myself you would have the money, however we would still be of the opinion it can be returned by the 18th of November 2013. As per prior email, a application for the money would be a good start.

We believe there is high prospect to return the funds as a matter of priority should we be in a position to do so, by the board standing down.

7) Private funding parties

Despite the view of the Directors, we are of the view that the company has high asset value and a bright future thereby we have at least two current options which will be advanced this week on the opportunity to either put in place a commercial loan or seek equity in the Company.


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We would assume you are now in a position to declare upon opening of the company from the Trading Halt on Tuesday morning, the 22nd of October 2013, you will be announcing the resignation of all board members immediately, so that we can advance our proposed funding arrangements. As you are aware we certainly believe the directors would be *********, and failing in their Director duties to continue on this attempted course of coercion to force the shareholders into a position, whereby it protects the interests of Mr ********* funding associate.

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Regards

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