Re the Corporate UpdateThese announcements are a dime a dozen...

Re the Corporate Update

These announcements are a dime a dozen and appear to repeat information and imagery previously released. Simply, they are a waste of time and the SP indicates same.

The best way for management to demonstrate that it knows what the the market wants is to simply do as follows:

(1) conduct continued drilling operations with the amazing purpose built Crusader rig (using all the $M in the bank to fund same) in pursuit of the many many targets which have been disclosed time and time again in all the previously released market announcement reports (or is there a problem with the Crusader rig or a problem with the lookalike targets??); and

(2) avoid doing complete strategy backflips such as that recently seen following the fallout of U3 and the subsequent demobilisation of the Crusader rig.

The reason the price reached $3.85 two years ago was due to the continued fantastic drilling announcements.

Since the appointment of Dr KW, the company has gone into virtual drilling hibernation without a care for the impact of this behaviour on the short term SP, hence in hindsight it was a good move to load up on shorts (possibly explaining why there were conveniently so many in circulation).

The fact that the company has not legally pursued KRED for its vexatious TO claim is also concerning. Simply, was there a disturbance of a significant site or not? If there was a complete exoneration of the company following an investigation what does this suggest? What was the cost to the company of KRED's vexatious claim? I know the SP didn't recover following the issuance of the KRED claim.

I look forward to Dr KW's explanations on Friday in relation to the above because the languishing SP is concerning and appears to me to be more due to a failure to be seen to be doing enough with the bit than anything else. The fact that management can be no longer relied upon to competently execute a major drilling strategy is also cause for concern.

Item 2 above took more wind out of my sails than the final result of U3.

Regards

JC