Ann: Chairman's Address to Shareholders, page-2

We are anxiously awaiting the issue of a tax refund arising from the R&D Tax Incentive Scheme.
Our return was lodged back in September, and it has taken considerably longer to issue
than has been the case in recent years. We have made several approaches but have been
advised that it will issue in due course. Unless it issues while this meeting is in progress,
this delay will trigger a requirement to issue 1M shares under the terms of a loan
agreement announced in June this year.

This delay also places pressure on our overall funding position, and the board is currently
in active discussion about funding the near term requirements of the company.