Ann: Appendix 3B , page-6

The below section of the half yearly report would seem to suggest that a funding arrangement is well and true truly in the pipeline...

I also agree with DT that taking shares over cash is a good sign.


2 OngoingOperations
These general purpose financial statements for the interim half-year reporting period ended 31 December 2011 have been prepared on a going concern basis. The ability of the Group to continue to adopt the going concern assumption will depend on future successful capital raisings. Should the Group not be successful in raising additional funding by capital raisings or other alternative funding arrangements fail to eventuate, there is uncertainty as to whether the group will be able to continue to operate as a going concern. If the Group is unable to continue to operate as a going concern, it may be required to realise its assets and extinguish its liabilities other than in the normal course of business and at amounts that may be different to those stated in the financial statements.
At the date of these financial statements, the Directors are currently pursuing a number of capital raising initiatives, including but not limited to:
? Working actively with an Asian based investment and management fund, in respect of a number of capital raising alternatives, including direct placement into Panax, and partnering with Panax on its advanced portfolio of projects in Indonesia. A mandate agreement has been executed;
? Working actively with a USA based investment and management fund, in respect of a number of capital raising alternatives, aimed at investment into Panax’s Indonesian portfolio of projects. A mandate agreement has been executed;
? Continuing to work actively with Vancouver based Molten Power Corporation (“Molten”). Despite the Heads of Agreement (“HOA”) with Molten not being formally extended past 29 February 2012, both Panax and Molten continue to work fully and co-operatively together – particularly in regard to Molten’s advanced stage discussions with a number of Asian based “greentech / cleantech” funds. The decision by Panax not to extend the HOA with Molten does not mean and has not meant any less effort being applied to this transaction, but merely allowing Panax to engage with additional parties more fully; and
? Panax is also in discussions with a number of well-known industry based players for a variety of funding related transactions.