Ann: Notice of Annual General Meeting/Proxy Form , page-3

re: Ann: Notice of Annual General Meeting/Pro... I voted last night using the electronic voting service. It certainly makes life easy and I recommend that shareholders give it a try.

I voted against the issue of shares to Peter Henderson. I also voted against the approval of the 10% placement facility.

I’m very disappointed with the performance of the board and management over the recent period.

I don’t believe the company has an effective communication strategy. Day after day we read material published by the anti-CSG lobby, sometime expressing genuine concerns and other times publishing misleading and at times incorrect information. The company appears to believe that not to have a voice is a better approach than a regular campaign of press releases.

The company has mismanaged the recent placement and SPP. The lifting of the moratorium pushed the share price towards $.30. One would have expected the board to have used this momentum to issue at a better price,perhaps even a premium. It seems the board was caught out in that it had no idea when the moratorium would be listed in and was locked into $.20, alternatively it did not have sufficient confidence in the company and its business plan to ask for a higher issue price. It seems that the way in which the placement and SPP has been managed has left the market with little confidence in this board.

The company appears to have been caught out by the lifting of the moratorium. This is evidenced by the lack of immediate plans for getting the company back on track. The company should have understood that the lifting of the moratorium was inevitable and it should have been ready to move immediately on the lifting. As it is we’ve had a couple of underwhelming announcements about miniscule sales and possible sales of gas in the local area and announcements which state that the company is still planning to do things. The quarterly report shows that nothing is actually happening at this time.

Conventional expploration and appraisal program: work continued on preparations
proposed kangaroo sandstone test: proposed test will be firmed up
2012/2013 drilling program: we are now in the second quarter and nothing is happening;

water handling program: still awaiting approval

gas commercialization strategy: directionless, the two key strategic initiatives Lions Way Pipeline and Richmond Valley Power Station appear to have gone. The company is reevaluating. The company is continuing discussions. The company announces a deal with a hub which doesn’t yet exist.

Finally, I voted against the placement facility. In light of the board’s performance with the current placement and the SPP, this board does not deserve our trust. If the board needs a placement it can reapproach the shareholders.

The company needs a clear message at this AGM that what it has delivered up in the past few months is not good enough.
cc: MEL