Ann: Appendix 3B, page-8

Re: why would they exercise their options now if they didn't do it before they expired? Yes, that is the $8 million question. And the answer is: they won't exercise their options now. They will only be exercised if, for example, the Valentia funds come through, or there is other good news in the form of investment or equity funding. In which case the company would probably be better off without the extra funding at such a level of dilution anyway. If you think about it, due to some sort of ASX loophole, the options are currently the only available source of working capital from shareholders while trading is suspended.