Ann: Letter re late lodgement of Appendix 3Y, page-7

It's been more than 3 months since the independent consultant was appointed to perform DD on the TCM transaction. The PZC announcement on 12 May 2017 said it will take up to 6 months so we are 1/2 way there, although it may come early. The market obviously doesn't believe this sale will eventuate but I think they are in for a surprise. Nobody pays a non refundable USD1M unless they are genuine and committed to proceed. PZC management also seem to be sitting back and waiting for this sale to occur before injecting a new project into the company. As I've said before the sale proceeds of USD6M/AUD7.5M will give PZC a cash backing of $0.0125 per share -> 6 x current share price.