Ann: Acquisitions and Equity Raising, page-5

Hello Alfred,

Thank you for your email and ongoing support of CLW and CHC.

I’m sorry to hear that you are upset about today’s CLW equity raise.

The CLW Board thought carefully about the optimum raising structure,balancing the speed and certainty of execution an institutional placementoffers against the slower, less certain path an entitlement offer or SPP wouldinvolve.

They were also conscious of the fact that retail participation in theOctober equity raise meant that retail shareholders had actually dilutedinstitutional investors on the last raising. Retail shareholders had beenfilled on over-subscriptions and issued $66.1m of stock in October, versusinstitutions who received $60m of stock.

Proportionately, retail shareholders had received 52% of stock in theraise while they represented closer to ~15% of the register. The Octoberraising was also heavily over-subscribed by institutions, but they had not beenallocated additional stock reflecting their demand.

Another consideration was that the ASX listing rules state that retailshareholders cannot participate in SPPs beyond a prescribed $30,000 limit overa 12 month period. Given the heavy participation of retail shareholders in theOctober raise who took the full $30,000 limit, there was also an issue wheremany investors would not be able to participate if an SPP was offered.

In regards to the raising price, the Board would definitely havepreferred to raise equity at a higher price. At the time CLW started conductingdue diligence for these acquisitions, the trading price was higher, however theprice is not something we control. Unfortunately, by the time of deal, the CLWprice was lower and we were not in a position to wait any longer for the stockprice to increase, or these acquisitions would have fallen over. The Boardbelieves these assets will increase in value over time and that CLW investorswill be rewarded for owning them, notwithstanding the small difference betweenthe issue price and NTA.

I hope this goes some way to addressing your concerns.

I will pass your feedback on to management and the Board.

If you have any further queries, please do not hesitate to contact me.

Regards,

Philip=
_”

PhilipCheetham
Head Of ListedInvestor Relations