Ann: Notice of Annual General Meeting, page-24

HI V4,

The problem with increasing the placement capacity is it allows the company to place up to 25% at a 25% discount to VWAP to whoever they like and leave existing shareholders out in the cold and severely diluted.

We don't have any incoming cash flow in the equation, that could fall short for some unexpected reason. Management in this situation, has full control over cash flow, and should know well in advance, if cash will be needed and should give existing shareholders first bite of the cherry.

I therefore don't even think they should use their existing 15 % capacity let alone ask us for approval to go to 25%.

They should detail the reasons why and the benefits that will emerge, if shareholders give them more equity to exercise their skills with.

Since Sept last year companies can offer the right to all shareholders to contribute up to $30,000 in a share purchase plan without a prospectus.

As I understand it there are no limits on the amount that can be raised through a pro rata rights issue which also doesn't need a prospectus. If they can get investors to take placement shares then they should have no problem getting a rights issue underwritten at the same price.

Reducing outgoings to the bare bones necessary to get the UG under the pit producing cash will be a necessary pre-requisite to a successful raising if mine development can't be funded in a better way.

Raising capital at this stage to progress non urgent exploration, unnecessary corporate costs, rehabilitation or maintenance will be the beginning of the end. Time for those things when the underground is throwing off cash.

The up coming quarterly report will be very interesting.