Ann: Appendix 2A, page-19

When it comes to valuation I won't pretend I am anywhere near your league, but what I have found useful with Biotechs is firstly looking at Market Cap to find a potential investment get a general idea on if it's over or under valued. But then the next and most important step is the 'product'.

A lot of the time with Biotech if you're looking for large gains in the speculative micro cap, you are looking at unproven drugs/devices.

I first look at what their main product is and then try put my scientific hat on and see if it has value or not. Every announcement will say it's of value, but you need to look at it objectively and remember that even if something says it's safe or has shown efficacy (successful ph2) is this actually of value - Where does it fit? You need to make the hypothesis and then test it, rather than try prove it. It's also important to not confuse correlation and causation in anything you do find. This will let you know if you should invest or not and also help with your risk adjustments during valuations.

I found this part very easy with RAC, but other holdings it was a totally different kettle of fish. Especially since I'm no scientist!

... once you have validated the product as best you can, you then go onto the next steps of valuation - pipeline, market peers, competition, market share, board, register, churning, cash burn etc

On RAC - Looks like the run has stopped or slowed down for now. I was getting excited with all the TA talk of $1.

IMO, DYOR, etc