Ann: Directors Statement, page-4

OK, here we go.....elaboration time

This is all from the wardens court document and the IPO prospectus – both available on the web.
http://www.dmp.wa.gov.au/wardens_court/2015WAMW7.pdf

Ozminex Pty Ltd is a private company with Ernst Kohler as director and shareholder and is registered at his home address.

Ernst Kohler at all times was a director of Echo and Ozminex.

History (take it from the prospectus)

Newmont applies for E44/1044 and it is granted in 2003. It is transferred to Echo as part of the Red Lake Tenement Transfer Agreement of 2005. This EL is 38 graticular blocks of ~+120km2. This tenement is 3km from Julius at nearest point. Greenstone rocks which host Julius run north into this tenement. It cuts the package in half basically as well so is very important and strategic IMHO.

Newmont (actually Echo were working with Newmont as they were preparing things for sale at this time but the application was in Newmonts name) lodge an application for a Mining Lease Application (MLA) of 11 graticular blocks OVER part of E44/1044


Now it gets interesting….

Fast forward to Saturday 21st September 2013. Echo do not submit their application for extension of all or part of the E53/1044. They were able to lodge rolling one year extensions here as per the Act. Given the management thought fit not to renew it fell away and left a hole until Monday the 23rd when Ozminex Pty Ltd and Nearology Pty Ltd made competing applications for the ground upon opening of business with the Department.

23/9/2013 The Ozminex (Ernst Kohler) application was all the 38 blocks of the Echo tenement E44/1044 and one extra. Essentially it was the same ground. Nearology also applied for all of the ground and then some more as well.

Objection lodged by Nearology Pty Ltd. Nearology objected because Ernst’s actions contravened the Mining Act – you cannot peg the ground within 90 days if you or a relative worked for a company which dropped ground.

21/10/13 Echo (Ernst as MD of Echo and also he had to be aware of Ozminex application here) DROPS MLA53/1084 which survived independently of the dropping of E53/1044. This was 11 of the 38 blocks and was the northern tenement to Julius. This tenement would have been able to be taken forward to grant if Echo wanted regardless of the owner of anything that used to be E53/1044 as the MLA kept ‘alive’ the underlying 11 graticular blocks of the former EL. Why would you (Echo) drop ground you did not have to which would favour your (Ernst) application for that piece of ground???????

May 2015 – Wardens Court decision - After losing the ground to Nearology based on the objection, Echo have now lost one tenement because they decided not to seek extension and another because they chose to withdraw it……….. but it was in favour of the MD’s personal company??!!??

Nearly 20 years in this game and I have never seen an MD do this...

Have a read – sections 4, 21 and 24 sum it up. The attached image shows the ground - green AND yellow was the extent of E53/1044 and the MLA 53/1083 sat on top of part of it but was removed later for some reason by Echo (Ernst). His application was ALL of the green and yellow.......

Now Anthony Macintosh is making the company publish a letter which says “I did not know and don’t like the look of this” to executive management decisions over the past several months (Mt Chalmers and the Ozminex V Nearology tenement farce).

My vote is "bye bye Ernst"