Ann: Share Purchase Plan Opens , page-5

The SSP is only a token gesture by the company to Shareholders. They are only raising $5m. There are 18,884 shareholders (last annual report).

If all applied for full $10,000 allocation and those (abt 2152 S/Hs) that participated in the last SSP for their $5,000 allocation then the scale back will be huge. Those that participated in the last SSP would only get abt 946 shares and those that did not would get 1892 shares. This is not going to happen because all S/Hs will not participate.

If the participation rate is the similar as last SSP then the allocation would be around 8,000 shares ($1,200)to those who participated in the last SSP and about 16,000 shares ($2,400)to those that did'nt participate.

The only way S/Hs will get anywhere near the full allocation is if the participate rate is very low. This may happen because the issue terms are not as attractive as the last SSP.

Why is the company only aiming to raise $5m from existing shareholders compared to the $85m they intend (subject to our approval) raising from the recent placement. The dilution of existing S/Hs is big. This includes Talbot

There must be another reason why the offer to the existing shareholders is very restrictive. Is there a condition to the recent placement where the new investors don't want to be diluted ? Is there some finance arrangement in the wind that will bring in a lot more capital then could be rasied from the shareholders.

All just my thoughts on a poor SSP offer.