Ann: Response to ASX Query Letter, page-2

Firstly, congrats to those who managed to double their money or reduce the loss on this stock in the past month or so.

The letter to ASX puts the directors on the hook of regulatory action with some severe consequences in the event that they spun the bullshit.

Although I am open to the possibility that the company will make it through and be successful my bullshit radar is spitting a few things out:

1. For them to pay a start up (OSY) to essentially move the stock shows incredibly weak their bargaining position was = how desperate they are.

2. Ditto regarding minimum sales. Unenforceable as usual. Shows that it's a pure punt for OSY.

3. Share price at 12c = fully diluted valuation $38mln. How the f*ck can this be valued at that much is beyond any rationale. It appears that the broker / partial underwriter is making sure they make a motza on this. Driving price higher to entice shareholders to participate and driving it high enough so that t e underwriter can actually sell stock on market once the share price starts falling and still make money.

As always great salesmanship by Hyslop. You have to admit he's talented and tenacious. Really could have applied his talents selling electric cars or something.

I would not touch it and if I held I would use every opportunity to sell at these levels before it crashes down. At 2.7c offer it would be valued at $10mln. It will get there again.