Ann: Appendix 3B , page-12

Drowning in LaJolla shares:

(a) 1,388,889 shares at a price of 0.0360 per share issued on 16 December 2011;
(b) 1,524,390 shares at a price of 0.0328 per share issued on 11 January 2012;
(c) 619,195 shares at a price of 0.0323 per share issued on 31 January 2012;
(d) 793,651 shares at a price of 0.0315 per share issued on 3 February 2012;
(e) 1,677,852 shares at a price of 0.0298 per share issued on 13 February 2012;
(f) 671,141 shares at a price of 0.0298 per share issued on 16 February 2012 and
(g) 3,114,187 shares at a price of 0.0289 per share issued on 23 February 2012.”
US $680,158 still to convert under the original CN so another 22 million shares to come.

“That, for the purpose of ASX Listing Rule 7.1 and all others purposes, shareholders approve and authorise the issue by the Directors (in their sole and absolute discretion) to La Jolla Cove Investors Inc. (“La Jolla”) of a convertible note in the Company, with a face value of US $1,000,000.00 and convertible into ordinary fully paid shares in the Company at a conversion price per share which is equal to the lower of 50 cents or 80% of the average of the three (3) lowest VWAP during the twenty-one (21) trading days prior to La Jolla's election to convert. (so another 33 million shares at 3c under the second CN)

oh dear.