Ann: Proposed issue of options - 3.10.3, page-6

I believe Ms Mehrtens has been with the company for a long time, prior to re-listing as LCK from MTN as a minimum, her name is on PEL650.

http://www.petroleum.statedevelopment.sa.gov.au/__data/assets/pdf_file/0004/230179/pel_650www.pdf

I would imagine placement would have been proposed to the new CNE directors when they were negotiation the corner stone investment, over 12 months ago.

Performance rights / options for board members and high ranking staff is not uncommon.

I dont have an issue with this at all, i think the timing of the proposal is suspicious (in a good way) - i.e. why would you propose this resolution to be voted upon at the next AGM which is likely to be 6 months away, with an exercise price of $0.35, if you weren't confident that approvals were near certain in the very short term?

That exercise price after approvals, or once flaring has commenced / concluded, resource upgraded would be criminal as we would all expect the SP to be well north of there.

To me they have got in before the SP goes through the roof, as positive news is imminent.....