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

Lots of information to digest here. I make the following observations for stakeholders:

1. Over half of the $33.5m of "new funding" is a prepayment on future magnetite sales. It is not equity/shares. The Company will incur costs in the future and receive no sales revenue for it.
2. In the ASX announcement of 23 October 2023 the Company notes that the prepayment arrangement is secured and yet no-where (in the ASX announcement, the Annual Report or the Notice of Meeting (NOM)) can I see the details of the security being disclosed. The security for the pre-payment should have been disclosed.
3. The Company is assuming that the SPP will be fully subscribed and raise $5m. This would appear to be unrealistic.
4. The pro-forma balance sheet in section 14.1 of the Notice of Meeting is worth a close look (bear in mind these numbers are now 6 months old).
5. The Company comes out of this with $17.5m in cash (and that is assuming the $5m from the SPP) but still owes $8.3m to creditors and $22.5m to Oz Pro (Vendor Finance) by June 2024.
6. There is still a current asset deficiency (current liabilities greater than current assets - an indicator of insolvency) of $14m.

What a mess!