ann out: adjournement of agm, page-14

I went to the AGM.

All seats taken and extras bought in before it started. Mix of punters, old, young and a couple suits that looked like reps from instos.

Iggy gave his spiel and at no time connected the companies over extension regarding spending to the current dilemma.

He aligned several factors that he regarded as the primary cause for the situation the company is in ATM. On several occasions he mentioned the fall in capex in the mining sector as the primary reason the company has found it difficult to raise capital. He bought up a slide and referenced the Boston bombings as a cause for the difficulty companies have accessing capital worldwide.

He mentioned they they made a decision not to give institutional and sophisticated investors the opportunity to participate in this raising and IMO made out they were doing some kind of favor (for retail investors) by restricting the raising to retail investors.

He was asked how they came to the 8c figure and he replied they had to price it at that level as dropping it by such a substantial margin would create a very favorable environment enticing investors to take up their entitlements.

He mentioned the company's main objective was (meaning I guess when they started the company) to develop the hard rock supply get the plant up and running and sell lithium. That's where it's gone wrong. They didn't pursue that plan to the end goal.

He was asked if they did not reach the 8mill what was the companies intentions from there. He stumbled for a second and replied they would be in serious trouble.

The meeting was quite with few questions. One fella stated he put in approx 27k and is sitting on a substantial loss to which Mr Redhead replied he bought 500k @ 77c and is doing everything he and the board can do to turn things around so they both can make those losses back.

This is purely my account and although I've tried to be accurate I didn't take notes. My recollection of events could be off in some areas however it would only be slightly. I welcome any others that attended to correct any inaccuracies.

Other items discussed are available in their recent announcements.

IMO there was a scent of desperation in his tone and rightly so.

Good luck all.