Ann: Monthly Appendix 5B , page-9

Lautrec

We see "the reality of how financially troubled the company is" every month via Appendix 5B so why "this announcement threw a wet blanket on positivity" is beyond me. We know the $3.4 mill commitment/placement is due for release only after shareholder approval at an AGM/EGM. So realistically, we could not have expected to see a significant change from the previous months. They've been 'surviving" on the smell of an oily rag for so long, another month or so is nothing in the scheme of things.

However, I agree there are currently many unanswered questions but don't you think the bank would have asked the same or similar questions in their DD. After all, they're in this for a ROI.

In the meantime, let's focus on the recent Bank Financing announcement and in particular:

"Key alterations to the terms of the facility will include:

1. The maturity date of facility is extended by two years with a new maturity date of September 30, 2013.

2. Current requirement to repay US$ 5 million of loan principal by 30 September, 2010 has been cancelled in full.

3. Future loan principal repayments are tied to cash flow and will be made on the basis of 50% of free cash flow, after allowance for reasonable capital expenditures, being directed to reduction of the facility.

4. Convert US$5 million of the facility principal currently outstanding into a convertible note with an interest rate of 6%, a maturity date of September 30, 2013 and interest payable able to be satisfied by the issue of shares. The convertible note can be converted into common shares of Marion Energy Ltd at the discretion of the Lender and conversion price will be set in accord with a volume weighted average formula applied at the time of conversion".

Why would they agree to these alterations (in particular Item 3.) if they weren't confident that MAE has some sort of a future?? IMO they could recoup their investment now in a fire sale (irrespective of whether or not they actually want the assets), but as they're prepared to wait a further two years and possibly incur more debt, it does beg the question - WHY?