Ann: Notification of Call on Partly Paid Shares, page-5

Hi @allaussie

There are only two reasons I can come up. One is pretty obvious, the other left field.

(1) Raise capital to get past the PFS.

4,615,373 partly paid shares, should all be paid up = $876,920.87c

The last quarterly showed:

$3,909,000 on hand; plus

$1,050,000 on term deposit.

Expected spend till the endof this month:

$2,605,000

Add pps above and I make that:

$2,354,000 until theDecember quarter (announced next January)

With a large amount of PFS expenses already paid, and a large percentage of the work already done, calling up the pps means there is no urgency to raise funds if needed until after the PFS.

The pps were issued inDec 2013 as part of a CR with a guaranteed “no call” for four years (so thiscall is almost two years past that date).

Or …

(2)

Changing a companytype

During the life of a company, you may decide to change your company type.

The activities or nature of your company may have altered so much that the existing company type no longer suits you.

Section 162 of the Corporations Act states that only some kinds of conversion are allowable.

A public No Liability (NL) may change to a public companylimited by shares or a proprietarycompany limited by sharesbut only if all the issued shares are fullypaid up

To change a company type you need to:

· Pass a special resolution

· Lodge Form 205 Notification of resolution and Form 206 Application for change of company type with ASIC.

I guess with an AGM coming up, November would be an opportune time to pass that special resolution should one be needed?

No liability companies (NL) are specific to mining and oil exploration and are restricted from some types of activities.

(a) let the whole or proportion of a mine or claim on tribute; or

b) make any contract for working any land on tribute

A tribute agreement isan agreement between the lessee or owner of a mine and another person (thetributer) who would work the mine or a portion of it for the lessee and wouldreceive a percentage of the revenue from the mine as payment. Tributeagreements set out the terms and conditions of such arrangements.

I really don’t know if a tribute agreement would include a JV or not. I’m just trying to cover all bases.

All the best,

Perdy