Ann: Response to ASX Appendix 4C Query, page-24

1. Does AJX expect that it will continue to have negative operating cash flows for the time being and, if not, why not?

AJX completed a capital raise in the month of January (in accordance with the Prospectus issued on 27 November 2019) that has added approximately U$3.7M (A$5.7M) cash in the current quarter before capital raising costs. As part of the capital raise, the Company repaid its previous debt facility and entered into a new convertible note with significantly reduced interest costs.

The secretary seems to imply a capital raising makes operating cashflow a positive , however a cap raise is not part of normal operating cash flow , as any one who understands accounting should know , I have to wonder why the secretary's answered in such a way .