Ann: Empire answers commonly asked questions on transaction, page-3

At this point of time, I would like to say THANKS to the board for their time to do a professional update in a way of Q&As to explain BETTER the reasons behind the ERM sell to EGO of its JV partnership for a way to MOVE FORWARD.

This time last year (close to it) we realized with the opening of the RG1 in production mode and the finalized cost expenditure to the plant was anned. It horrified us to no ends of the nature of the over budgeted GOLD PLATTED plant we got.

ERM saw our concerns and being a party to the JV cracked and thought about it long and hard to the horrifying fact that they faced with EGO. Along came the 10% buy in and the subsequent 249D to force the board to their knees and surrender under the weight of SHER dissent. I too still think at this stage that ERM also knew of the problems associated with the Wannamal Seismic and costings to them from the $2M overbudget.

Enough was enough and 2 major stuff ups ended the way it did for the old guard at the time. ERM have always promised from the beginning that they would UNLOCK the SHER value of EGO. The road is long and hard with multiple bumps so far but NOW it is starting to flatten out and become smoother. THANKS to ERM for their support and if this did not happen the who knows where we would be if their 249D had failed.

I still have a problem working out how the $17.5M raised from the placement and rights issue works. My way of understanding is that its intertied but ERM are only $7.5M of it and how this comes into play with $10M as they say is raised in rights issue when ERM are tied into this too. Still not CLEAR.

Clearly I think that it has been spelt out and has stopped short of saying that EGO was in more trouble than we know of and things were really serious and lose of permits was at deaths door. Expenditure on these must have been minimal as all the focus was on the RG1 plant and wells, leaving other permits in peril of losing. I think a lot has to spent of the raisings to hold them in good steed instead of being directed for drilling.

12 mths still to pay off tranche 1 and possibly more revenue in our pockets from tranche 2 where ALCOA has to start paying CASH to us. Interesting to see that extreme confidence that RG1 well B sands can fully supply the Tranche 2 supplies which is greater than the Tranche 1 supply volume.

I think the ERM sale to EGO dispels any myth of concerns. realising where we were and where we are now. Who would have stumped us up if the old guard was still there, communication skills were zero. ERM have stumped this heaps to get us out of the mess where we are now and time will benefit us all in further in a slow and sure path.

We should focus and support the move that has been made by both ERM and EGO. We have a lot to prove before ERM iif in its powers decides to T/O EGO through their demerger. Short term the road is clear.

THANKS again to the board for clearing the air.

PS
Boeing, its time for you to put your tail rudder back on and see how this deal benefits EGO in the long term. The Q&A are very clear.