Ann: MoU for Supply of Briquettes , page-11

Obviously Famoso needs for further education. White Energy invested approx. 100 mio in a JV with Bayan Resources in Indonesia. They buildt a plant on Bayans remote mine site. The supply of coal was contracted with Bayan. When the plant was 99 % complete - a couple of weeks before the ramp up to 1 mtpa- Bayan quit the supply of coal overnight, id est at the most vulnerable point for White Energy. The whole shebang is subject to a court case at the High Court of Singapore since 2 years. Thats one of the main reasons why admin costs are higher than normal. Another reason is Whites hospitality when mongolian governmental representatives visited the briquetting site at Cessnock ;-). Only a naif character can expect that the board of White Energy will approve any Capex or put their IP at risk for another project that holds the same potential risk as in Indonesia, i.e. having no security over the coal supply (especially in a country with a comparatively low level of legal certainty). That´s what I would call "hilarious". Shareholders should consider these circumstances. IMO Modun would have a better starting position in their financing discussions for Nuurst with two MoUs, one for the sales and one for the production of briquettes.