Ann: Appendix 3B , page-3

"**(iii)and(iv) No SP incentive but a market cap incentive, IMO thats alot more CR and share dilution to come."


How do you equate increased market cap with increased dilution. I would have thought the opposite applied. Each time we get diluted the SP diminishes or at best remains static. You can't dilute and add market cap, you're simply spreading/diminishing current values across a bigger register.

We're talking 30 million options,
-7.5 mill vest now
-7.5 mill vest in 12 months if MH hangs around
–7.5 mill vest at MC = SP@3c approx
-7.5 mill vest at MC = [email protected] approx

Therefore IMHO, worst case scenario (from this distribution only) there'll be 15 million additional shares by end 2013. Can't see how this level of dilution will move the SP one way or another.

If the proposed MC is achieved/exceeded however (sooner rather than later hopefully), I don't care how many of us there are frankly.

If you're talking about additional CRs in the med term to raise funds, You're probably right, we simply are 'realistically' underfunded right now. I remain optimistic however, and I think the project size alone will soon (if it aint already) show up on the radar.