Ann: $1.6M Institutional Placement, page-6

If cash is needed, the CR is a way of life so I'm not going to sling mud about the CR.

But we need to be careful not to apply the blinkers when assessing capital raisings, how they are managed and objectively assessing the cost - every CR is very expensive, ballpark minimum $400K-$500K (whether it's cash or shares to the broker) so there are a few things to acknowledge here:

1. The sell-down prior to the CR was *somewhat* coincidental - let's assume there was nothing untoward there.

2. Having multiple raises in a 12 month period is extremely costly. Of course it's not a great idea to raise too much at a lower share price but once you factor in 3 x CR costs at $400K-$500K each it's up to $1.5 mill into the pocket of the broker and that's cash GNM have paid in fees rather than directing it to operations.

3. Don't ignore the 67 million options that have been allocated to the lead broker as payment - I'm unsure if there is also a cash fee for this CR. All have 3 yr expiry and 22 million are at an exercise price of 2.4c so those options alone will reap $440K for the broker if the GNM share price hits just 2.6c (which it did just a week or so back). Plus there are another 44+ million at higher exercise prices.

The financial benefit of the CR to the lead broker is potentially substantial - again I get that & it's part of doing business, but also factor in the dilution effect of those options on ballpark 900 million shares - a dilution of 7% and that's a cost to you, me and every other shareholder so once we factor in all of those nasty details it's difficult to see how GNM wouldn't have been far better off just raising more capital at a lower price especially as it was only a few months ago and the forward planning must have been on the table at that time.