re: Ann: Interim Financial Report and Appendi... Lets not stop...

re: Ann: Interim Financial Report and Appendi... Lets not stop there!

The loss of the Group for the half year amounted to $7,291,000; the Group had a net working capital deficit of
$21,538,000; and the Group had a net decrease in cash of $12,735,000.

In the opinion of the directors, it has been concluded that the going concern basis is appropriate as the Group is
expected to receive proceeds from the sale of Vanmag; pursue the sale of non-core assets and evaluate a potential
strategic investment into the South African and Botswana businesses by an established business partner; renegotiate
or refinance maturing debt facilities; and raise additional capital during the 2013 financial year.


On this basis and considering the options available to the Group, the directors’ declared on page 45 that there are reasonable grounds to believe that the Group will be able to pay its debts as and when they fall due. Should the expected injections not occur and capital not be raised, the Group may not be able to continue as a going concern. It may be required to realise its assets and extinguish its liabilities other than in the normal course of business, and at amounts that differ from those in
the financial statements.

The parent entity issued $350,000 of convertible notes on 10 December 2012. The notes are convertible at the
option of the holder at the rate that is the lower of 130% of the 10 day trading VWAP after the execution date or 90%
of the 10 day trading VWAP prior to the conversion date. Interest of 10% was paid upfront through the issue of
939,346 fully paid ordinary shares. The maturity date of the convertible note is 9 May 2013; the note was converted
prior to maturity in January 2013.

The parent entity secured an $850,000 note facility on 6 December 2012. The notes are interest bearing at a rate of
5% per annum. During the half year, the Group issued 2,000,000 fully paid ordinary shares with a value of $88,000
and 6,000,000 options exercisable at $0.057 on or before 6 December 2017 with a value of $219,000 to the lender
as consideration for the provision of the facility. The notes are to be repaid in instalments through 30 April 2013,
which is the maturity date.

During the half year the Group issued $1,800,000 of convertible notes in six tranches of $300,000. The notes
are non-interest bearing and convertible at the option of the holder at any stage between their issue date and
their 30 June 2014 redemption date at 80% of the lowest daily VWAP in the 10 trading days before conversion.
The tranches were converted throughout the half-year with the entire $1,800,000 being converted prior to 31
December 2012. The Group has issued a total of 3,015,334 fully paid ordinary shares having a total value of
$108,000 to the investors as consideration for the convertible note facility provided to the Group.

18/10/12 –To consultants as consideration for capital raising services provided to the Group 1,537,796

02/11/12 –To consultants as consideration for capital raising services provided to the Group 409,837

22/11/12 –To consultants as consideration for capital raising services provided to the Group 552,826

30/11/12 – To consultants as consideration for corporate advisory services provided to the Group 1,000,000

06/12/12 – To consultants as consideration for corporate advisory services provided to the Group 273,771

07/12/12 – To consultants as consideration for capital raising services provided to the Group 514,875

07/12/12 – To consultants as consideration for corporate advisory services provided to the Group 1,000,000

Well, well, well.

Repayment of the principal and interest on the loan from Range Resources Ltd has been extended to 30 June 2013.

And Ol' P/P was caught on recording assuring this had been paid back.

A lot of "loans" going on for a company with so much interest in it's assets.

What a mess!!