Ann: MEC Resources Ltd - Company Update, page-17

Hi Avco,
whenever funds are raised, it has the potential to dilute existing shareholders. So whether you take up your rights or purchase plan opportunity in any given capital raising you may be increasing or decreasing your ultimate exposure to the end asset. As always, please seek professional investment advice prior to undertaking any investment.

Should MEC raise capital to invest its 30% down into Advent (a la the PDF Act), then substantial funds would need to be raised - multiple times its existing market capitalisation should it raise sufficient capital to fund the 3D and drilling. Unfortunately not all shareholders are in a position (choice or otherwise) to invest this multiple value of their existing holdings. You may note the results of the capital raisings undertaken during 2017. Whilst MEC was very pleased with the support received from many shareholders, it ultimately didn't provide sufficient funds to enable full investment into a 3D survey to be undertaken, let alone a drilling exercise.

Therefore Advent Energy determined it necessary to consider further investment partners to ensure continued exploration of PEP11 was undertaken. The agreement with RL Energy is well in line with current market conditions.

We're not privy to a superior commercial offer, and would be pleased to understand the form of a superior commercial offer that has a positive impact on your percentage ownership of the company and/or its asset(s).