Ann: Audited Financial Report Commentary & FY19 Outlook, page-2

the outlook is a very good read.

FY19 OutlookAngel has experienced strong domestic demand to date in FY19, and inbound enquiries by a numberof potential global customers for export quality oysters; particularly Asian customers. Angel’s CEO andFounder has recently visited potential partners in these markets. Despite this interest, the key focusfor the Company from now through to Christmas 2018 is optimising Angel Seafood’s oyster productionto maximise domestic sales.The Company expects to have completed key increased production enabling tasks such as relocationof the Coffin Bay oyster leases and commissioning of the expanded Coffin Bay processing facilitybefore the peak Christmas season. Once this investment has been completed, Angel Seafood will havethe facilities and infrastructure in place to deliver the larger volumes anticipated as spat supplyincreases and the oysters in the water grow to an optimal size for sale.The Board, given its water holdings and stock on hand, is confident of delivering growth in operationsand financial results through FY19 including achieving an operationally cash flow positive position.However, in making this statement it is always important to note the inherent operational risks inaquaculture that may impact on future results.The Company expects that spat supply will continue to be tight over the coming 6 to 12 months, butAngel is confident in receiving enough spat to reach its business plan outcomes. The Company wishesto again acknowledge the work of the South Australian Government, SAOGA and the hatcheries inbringing as much spat to market as possible. The Board anticipates that access to spat will improvethroughout FY19.