Ann: Quarterly Activities Report, page-9

Folks,

Thought the latest report was very positive.

Latest cashflow as at 30 Jun is interesting & confirms that we will need financing in place by final Qtr '14.

Here's my take on the key points:

. Spent $1.6m during Jun. Qtr '14
(not an unexpected increase due to new key staff, Paul Vollant, lots of travel, accomm. closing the new MOU's & potential Malyasian plant location;

. Cash at bank $4.2m as at Jun. 30 '14
(pretty solid really & as long as a financing deal is struck in the next Qtr. we should see a Capex raising from Shareholders avoided;

. Forecast expenditure $1.5m for Sep. Qtr '1
(continuation of high travel & associated costs to close out binding MOU's higher; costs associated with DFS completion & admin charges with new staff);

. Therefore, forecast Cash at Bank as at Sep. Qtr '14 is $2.7m.... ($4.2m-$1.5m)
(All good.... if cornerstone (Hyundai) & DFS (Posco) financing arranged during Sep.
Qtr.)

IMO, I think PB has got his strategic timing on track to manage any cashfow pressure.

Cheers,

Jvest