Ann: Change of Director's Interest Notice - Price, page-35

The directors are empowered by the company constitution to set incentives with reward for achieving the set milestones, shareholders vote for or against or abstain to ratify (or not ratify) the performance incentive. Directors just love to give themselves free performance rights. In Horizons case the gold price is on an upward trend so I am hard pressed to find an incentive that has a decent milestone but I think any incentive needs a high hurdle in this increasing gold space also we have two projects and Cannon underground coming on that will provide non dilutive cash. So what can be the incentive or incentives, is it establishing our own mill or achieving a 50 cent share price. If an incentive is to be proposed by the directors it has to have a high bar with a clause that if a merger/takeover happens the performance rights or options will be cancelled. The directors must lose when we shareholders lose.