Ann: Letter to Shareholders, page-5

Hi Salty Shadow / Fellow Creekers,

I attended the investor presentation last Tuesday night, and the LCK team seem hell bent on hitting the flaring in Q4 deadline.

Phil Stavely spoke about the project and where it is at.

The actual presentation gave little to no new info, however I did ask numerous questions about where the project is at etc.

He mentioned

- the EIS and SEO is to be submitted to the SA Gov in coming days/weeks (although I have been told this before);
- reaffirmed all data for documents above has been collected;
- all annual leave for staff to end of year has been cancelled;
- A 3rd permit to drill production wells and additional GW wells for the PCD facility has already been submitted (I am a little unclear what the title of this was, but he seemed confident it's only days away from approval);
- PCD Inlet and Outlet wells are as I thought, about 500m deep and only 50-100m apart, will be around 8 inch diameter and cased to target seem (directional drilling to occur between the two);
Casing for above wells is en route from Saudi Arabia and should arrive soon;
- Below ground works packages (i.e. drilling) is nearing be let;
- SA Gov seem quite supportive (by his account) and are happy to let the approvals process follow the SA Gov roadmap for unconventional gas projects through to approval;
- Sherwood had an issue with CNE placement price as he believed he could sell the company as is at a better price - but when asked to provide details and so on, failed to do so - they believe there will be little more trouble from him; and
- Still very confident they will flare prior to expiry date of options (glad to hear that!).

I think that is about it for now

Hope the above is of use to you all

Cheers