Ann: Spacetalk goes to the UK, page-86

Some 'notes' on the Note...........to refresh our memories.......... (see 3rd Oct ann for more details)

Key features of the Note are:

• It will be drawn progressively following issuance of notice by the Company in 2x$500,000 and 4x$250,000 tranches.The amount of each tranche is at the Company’s election.

• Drawdowns are conditional on the VWAP of the share price being greater than $3.00 (15 days for the first draw down and 30 days for subsequent draw downs).

• Interest of 7per cent is payable only on drawn amounts.

•The Conversion Price of the Note will be the lower of $3.50 or at a 20per cent discount to any future share issuance by the Company.

•The Investors in the Note will have a right to convert at any time.

Company CEO Mark Fortunatow, said: “The Note allows us to draw funds as we require them. It is unsecured at an attractive interest rate and doesn’t restrict us from raising additional debtor equity".