Ann: Appendix 4C - quarterly, page-31

In part I agree with you, the current selling at $0.001 is an option grab, however those who are doing this were owners before the record date which IMO indicates they had expressed a view, that this is worth holding. When a company raises capital at a min $0.001 with the offer of free options, it's only logical to dump your holding and repurchase through the raising. This is particularly the case when the raising is at a min of 1 for 1 ratio.

Will there be a dump after the raising is over as those who participated in the raise sell their shares while retaining the options? Perhaps. But if you want to follow this train of thought you would expect that the dump would approximate to the number of shares raised divided by 2 i.e. the number of options issued. This way the same exposure is maintained at a reduced cost. Saying that all shares would be dumped and options retained is based on an assumption that views have changed (relative to those held at the record date), which may be the case, however this is more subjective.

The price action through this raising, and the prior failed raising has been somewhat predictable and I think people are seeing it this time around as we're not seeing the 100mil plus stack on the $0.001 ask like we did in Nov. Let's hope the price movement following the raise will follow suit as previous movements . . . $0.002 is a healthy price when you're topping up at $0.001.

All IMO