Ann: Notice of General Meeting, page-69

Hi Micky,

Interesting how deals are described.

I have thought of the Rexes as we get 75% until we were paid back for the cost of infrastructure and drilling.

The legal status was after Rex 3 we then had ownership at 50% an increase of 10% from the previous level of 40%.

So under the purchase agreement PLX has been given all our bits and pieces we were partnered with except Wizard Lake. In Wizard Lake the legal description is that they are giving us another 10% of all the Rexes. So we get 60% and they 40% of the production.

At the end of March when the next part of the deal is transacted we will have 100% of Rex 3 and they will receive 10% of production of Rex 1 and 2 until December when we both go our separate way.

Don’t really know if the terms they use are specific to that sort of arrangement, way above my pay grade.

Cheers

Saltbus