Ann: Trading Halt, page-92

I don't believe that a prospective TO offer is a motivating factor for management currently seeking to raise funds. It's too early in the life of the project. Look at the board's track record, their history of really building a well-proven, de-risked, long-term and financially viable operation - then entertaining TO offers.

We're not dealing with accountants and lawyers at the top of the EXR tree, quickly building up the company so that a quick profit can be gained from a TO. These are professionals who take tremendous pride, and gain immense satisfaction, from starting at the bottom and building a world-class operation - and we're not there - yet.

To me, there are motivating factors for the sudden fund-raising that none of us are privy to. Something has happened to take us from an oft-repeated adequacy of funds for a well-documented development programme, to suddenly raising significant funds. I'm speculating wildly here, but think outside the square a little. Maybe the Australia-China relations have given Rio Tinto cause to be concerned about their electrical supply ex China and are encouraging EXR to expedite the move towards electricity generation. Maybe the Mongolian government is encouraged by EXR's work to date and have gas or electricity development plans that they want to bring forward. Ours is far from being the only CSG project in Mongolia and EXR no doubt have their ear to the ground with the status of these other projects. Maybe we need to accelerate the programme to stay ahead of the pack.Maybe our partner for gas off-take has struck a deal to gassify all the trucks carrying coal into China and we need to provide surety of supply.

Whatever the reason is, I have total faith in our leadership team. I'm satisfied that this raising is being done with the best interests of EXR at heart and I'll participate in it.