Ann: Appendix 4C - quarterly, page-5

It was good to see a big jump in cash levels. Hopefully that puts to bed any lingering doubts that a capital raising is going to required anytime soon. I believe $1.48M is the highest level of cash held in over 3 plus years.

We know the business strategy is to drop the ZinClear selling price in an effort to pump up the volume of product sold. This strategy takes time as the market reacts to the new pricing point with new customers starting to formulate with ZinClear. While there has been a 15 per cent increase in sales revenue which is excellent, the true increase in volume sold may be actually higher as some form of a price reduction may have already been passed on to existing customers.

I was surprised to see $65,000 in interest received for the half.

Hopefully the half yearly report will answer a few questions. I am very comfortable with the way this investment is playing out.