Ann: Electricity Development Project Pre Feasibil, page-8

re: Ann: Electricity Development Project Pre ... Hendrous i too share your opinion. I emailed the company yesterday, i am quite excited by this project because if it gets off the ground, then potential cash flow pa. would be >1/2 the company's current market cap. My main concern was whether or not the tariff would be received considering a similar project in Oz was rejected last week.

Funding won't be a problem because most of the equipment can be leased so impact on cash flow will be minimal. It also looks like the project can be staged so they should start one after the other to generate income while others are being constructed.

Below is Q&A

Question i sent:
In regards to today's announcement, could you please tell me if there are any similar gas power plants receiving the feed-in tariff? Would the project still be profitable without this tariff?

Could you also please tell me if the company has progressed any further with joint venture discussions? Will an agreement be signed soon?

Answer from IR:
Thank you for your email. In regard to your questions, there are no other coal mine methane (CMM) plants in France, however most landfill gas plants in France receive the government’s feed-in tariff. This tariff can be 20%-30% above baseload pricing. Our CMM operation has similar greenhouse gas mitigation attributes to the landfill sites, and hence should be eligible for a tariff. Profitability without a tariff depends on baseload pricing in France, on recent historical data and forward data, yes, the project would still be profitable without the feed-in tariff.

Joint venture discussions are continuing and news will be released to the market if successful.