Ann: Quarterly Activities Report, page-26

K-dubs

All on the basis this proposal is enacted...

In effect, there is a 'dilution' of your precious AUZ shares, since some of the assets (the non core tenements and their potential future cash flows) will no longer be a part of AUZ. You have the same proportion of a smaller pie, so to speak. This part of the wider proposal gets to a similar position as a normal capital raise dilution, whereby post the capital raise, you have a proportionately smaller piece of the same sized pie (subject to the purpose of the raise, but let's not complicate things overly). You can see that both are in essence, a dilution.

HOWEVER - the kicker here is the offset. Yes, you have proportionately smaller piece of that scrumptious AUZ pie, but you're given an additional (and proportionately equal) piece of another pie (being the non-core tenements)!

And to take this analogy one step further, let's call these non-core assets "pumpkin". Whilst part of the AUZ pie, full of cheese , bacon and the like, the pumpkin's flavour got a little lost. But now, in their own pie, the flavours have a chance to really shine, all on their own!

That is the theory anyway... broken down in a way that, given some of the comments lately, should be understandable at the lowest common denominator...