Ann: Quarterly Activities and Cashflow Report , page-28

Depends what you mean about Pala and management being in bed together?

Pala have one ELM board member and have a say on the board like the other board members so in that respect, they work together on issues.

But at the last 2 shareholder meetings, a well respected ELM poster here made it very clear to the board (Pala was not present unfortunately)of Pala's well documented public infamous allegations and I stress allegations of Corporate thuggery.

In response to questions raised about whether Pala was responsible for the sell down in ELM's price, Iain Macpherson stated words to the effect: "We are well aware of Pala and their past and I am 99.9% certain that Pala is not responsible."

Also, there are larger shareholders than Pala on the register who are also well aware of Pala and have a massive vested interest in making sure full value is created in ELM.

I firmly believe the next 2 months are going to be the most critical for ELM. If we get funding it could start a massive new up trend, if not then our worst fears could eventuate.