Ann: Exploration Update and Outlook, page-13

I think some of the contributors here are completely out of line when it comes to their comments about the directors . This company has been pounded from pillar to post by both sides of politics and I think it is a credit to the board that the company has survived and yet may give a return to the shareholders. Peter Ryan and the Nationals introduced the original moratorium on gas exploration in Victoria and according to Ryan the moratorium was only to cover fracking and coal seam gas but a mistake was made and all gas exploration was included in the ban. It is doubtful that this was in fact the case as at no stage did Ryan bother to explain to the public the difference between conventional gas exploration and fracking as he was scared stiff of Green misinformation. Andrews extended the moratorium and eventually permanently banned fracking which Lakes was not involved in . Lakes has always had limited working capital but it still had to survive and meet its ongoing everyday bills which it has done. All of the damage done to the company has been by politicians and the board has had to wheel and deal to survive which it has done. If it had not been for the current board the the company would not have the interstate assets particularly co2 that it now has. If you are not allowed to explore it follows that you do not have an income so in order to survive you have to keep returning to share issues or farm in agreements which the board has done. Prior to the moratorium Lakes was very close to going commercial with Wombat but management decided that it wanted to prove that the Wombat field was much larger and return to shareholders would have been greater. However prior to this happening Ryan introduced the moratorium without consultation with the company and whilst the M.D was overseas sourcing drilling equipment. It is also interesting to note that members of the board at that time include Professor Ian Plimer and Alexander Downer individuals of impeccable character. Nothing has changed with Wombat and what is under the ground is of far greater significance than people realise. It is not the board that is to blame it is the politicians so to blame the current directors for the company’s problems is out of order. Sheet the blame home to where it belongs gutless politicians.