Ann: Cleansing Statement - Section 708A(12C)(e), page-6

On a morning read, I have realised its all in how you present the information - but I think it is misleading.

I the total in the first table I copied from the announcement, it clearly shows the total of all notes currently issued and not yet converted are $3,474,280.

However, in the second table from the announcement above, only deals with the conversion of the last draw down on the note facility, not the total conversion of the notes.

If the new notes (not all of the notes) are converted at 8.0 cents, then there will be 3,928,500 shares issued.

However, if all of the notes are converted at 8.0 cents, then there will be 43,428,500 new shares issued.

This would increase the total shares on issue to 154,441,679. (see table below)

		Lat issue	Total notes
1	Convertible note	314,280	3,474,280
2	Conversion price (cents)	8.0	8.0
3	New shares on conversion	3,928,500	43,428,500
4	Current shares on issue	121,013,179	121,013,179
5	Total shares after conversion	124,941,679	164,441,679