Ann: Appendix 3B, page-10

rony, mate, to be honest I'm as pleased as punch......I understand the problems of
trying to run a company that requires expenditure to achieve its goals without any income...
Believe me mate it is not easy.....When these deals were done the situation was dire, indeed
immediate cashflow problems still exist.......The rapid Sp increase while arousing a great
deal of interest in the market does not ease immediate funding issues.....I do not believe
the company would have expected what has happened in the last week or so to occurr....
They are still probably trying to get their heads around it as much as we are, unfortunately
for management deals they done in the immediate past might not seem to be as
important now or should should I say skewed to the lender given SP at the time as compared
to what it is today.....How they get out of that I don't know, Obviously we can stop
the warrants being issued, It is pretty clear if SP remains around these levels the issue
will be voted down.....Common sense ensures that will happen but common sense should
also make us aware we still need funding.....Just imagine rony, if we were still trading at
2c we wouldn't have all these "problems".